Uganda’s inflation reaches double figures for the first time in 10 years

Uganda’s inflation has reached double digits for the first since July 2012, the Uganda Bureau of Statistics (UBOS) has said.

The  core inflation has also moved above the midterm Bank of Uganda target of 5% as the economy continues to feel the pinch of rising commodity prices.

While presenting the figures on Friday, 30 September 2022, UBOS indicated that Annual Headline Inflation for September 2022 has shot to 10.0%, up from 9.0% registered in August 2022.

Core Inflation is recorded at 8.1% in September from 7.2% recorded in August 2022.

The construction sector registered 5.5% inflation in August 2022 compared to 5.6% of July 2022, while civil engineering/works in August saw inflation jump to 6.9%.

Inflation for residential properties in Kawempe and Rubaga increased to 10.7% for Q1 2022/23 compared to -9.7% registered in Q4 2021/22.

The Annual Quarterly inflation for Residential properties in Greater Kampala Metropolitan Area increased to -1.3%  for Q1 2022/23 from -1.5% for Q4 2021/22. Annual inflation of properties in Kampala Central and Makindye areas decreased to -13.7% in Q1, Q4 was 2.4%.

Bank of Uganda has said it might be forced in the near term to further tighten the monetary stance if inflationary pressures continue.

Bank of Uganda in August increased the Central Bank Rate to 9 percent. This was the third month Bank of Uganda is increasing the Central Bank Rate as the economy continues to face strong cost-push inflation pressures from the external environment, dry weather conditions and exchange rate depreciations amid weak domestic demand.

Inflation Rate in Uganda averaged 5.84 percent from 1998 until 2022, reaching an all time high of 24.40 percent in November of 2011 and a record low of -5.36 percent in November of 2001.