Uganda’s annual inflation nears 5% mark as commodity prices continue to rise

Uganda’s inflation as measured by the Consumer Price Index for the 12 months to April 2022 increased to 4.9 percent, up from 3.7 percent registered in March 2022, a report by the Uganda Bureau of Statistics (UBOS) shows.

Ms Aliziki Lubega, the Director Macro Economic Statistics at UBOS, says the 4.9% inflation registered in April 2022, is the highest since the 2016/17 Consumer Price Index (CPI) rebasing.

“We may hit the inflation target of 5% by BoU soon. There is need to caution ourselves on our expenditures,” Ms Lubega said.

According to UBOS, this was mainly driven by the increase in the prices of commodities. Food and Non-Alcoholic Beverages had an increase of 6.9 percent, Housing, Water, Electricity, Gas and Other Fuels had 4.5 percent, furnishings, and household equipment and routine household (16.5 percent).

Others are Recreation, Sport and Culture (2.9 percent), Restaurants and Accommodation Services (5.0 percent) and Transport (2.3 percent).

Commodities with notable price increase during the month of April 22 include sugar, maize flour, rice, refined oil, tomatoes, passion fruits, transport costs, fuel, cement and soap.

The average retail price of a litre of Diesel rose to  Shs4,704 in April 2022 from Shs3,423 registered in April 2021, according the CPI Apr 2022 press release.

The average retail price of a litre of Petrol rose to  Shs5,209 in April 2022 from Shs3,856 registered in Apr 2021, according the CPI Apr 2022 press release.

The average retail price of a bar of soap rose to Shs7,798 in April 2022 from Shs3,864 registered in April 2021.

According to the UBOS report, the Monthly Headline Inflation for April 2022 increased by 1.4 percent compared to the 0.8 percent rise recorded in the month of March 2022.

“This is mainly attributed to the monthly Food and Non- Alcoholic Beverages Inflation that rose by 3.1 percent April 2022 from the 1.4 percent rise recorded in March 2022. In addition, the monthly Inflation for ‘Housing, Water, Electricity, Gas and Other Fuels’ increased by 2.1 percent in April 2022 compared to the 0.5 percent rise recorded in March 2022,” the report released on Monday states.

Furnishings, Household Equipment and Routine Household increased by 2.8 percent compared to 3.8 percent rise recorded in March 2022 and Transport by 1.2 percent rise in April 2022 compared to the 0.4 percent rise recorded in March 2022.

However, monthly ‘Personal Care, Social Protection and Miscellaneous Goods’ decreased by 0.8 percent compared to the 0.1 percent increase recorded in March 2022.

“We may hit the inflation target of 5% by BoU soon. There is need to caution ourselves on our expenditures,”

Aliziki Lubega, Director Macro Economic Statistics at UBOS,

Monthly ‘Information and Communication’ Inflation declined by 0.1 percent in the month of April 2022 compared to the 0.8 percent drop recorded in March 2022

Analysis by geographical areas and income groups revealed that Gulu registered the highest Inflation of 6.9 percent for the 12 months to April 2022, up from 5.5 percent recorded in March 2022.

This was mainly driven by annual ‘Housing, Water, Electricity, Gas and Other Fuels’ Inflation that increased to 12.9 percent in April 2022, up from 7.7 percent registered in March 2022.

 In addition, annual ‘Recreation, Sport and Culture’ Inflation increased to 11.4 percent in April 2022, up from 3.6 percent in March 2022.

The second highest Inflation was registered in Fort Portal at 5.8 percent for the 12 months to April 2022 up from 3.7 percent recorded in March 2022. This was mainly driven by Annual ‘Food and Non-Alcoholic Beverages’ Inflation that increased to 6.3 percent in April 2022 up from 1.3 percent registered in March 2022.

In addition Annual ‘Furnishings, Household Equipment and Routine Household’ Inflation increased to 21.1 percent in April 2022 up from 12.5 percent in March 2022. The least Annual Inflation was registered in Jinja at 3.8 percent for the 12 months to April 2022 up from 2.6 percent recorded in March 2022.

The low inflation in the Centre was mainly due to ‘Restaurants and Accommodation Services’ Inflation that declined to 5.9 Percent for the 12 months to April 2022 down from 7.2 percent in March 2022.

In addition, Annual ‘Personal Care, Social Protection and Miscellaneous Goods’ Inflation declined to 4.4 percent in April 2022 down from 6.9 percent in March 2022.