Optimism as inflation for April 2023 drops to 8 percent

The increase in supply of basic goods into the country saw Uganda’s annual inflation for April 2023 decline from 8.0 percent compared to the 9.0 percent registered in March 2023.

According to figures released by the Uganda Bureau of Statistics (UBOS), laundry soap, cooking oil, fuel, charcoal and basic food crops such as cassava and matooke all experienced a decline in prices due to increase supply.

The main driver was laundry soap inflation that registered minus 6.0 percent in April 2023 compared to 4.4 percent registered in March 2023.

In addition, Refined Cooking Oil inflation registered minus 9.0 percent in April 2023 compared to 2.8 percent registered in March 2023.

Other driver to the slowdown in the Annual Inflation was the Annual Energy Fuel and Utilities (EFU) inflation, which slowed down to 2.1 percent in the year ending April 2023 compared to 4.4 percent registered in the year ended March 2023.

“This was mainly due to solid fuels inflation that registered 6.0 percent in April 2023 compared to 7.2 percent in March 2023. In particular, charcoal inflation registered 2.5 percent in April 2023 compared to 7.7 percent in March 2023. In addition, petrol inflation slowed down to minus 2.9 percent in April 2023 compared to 0.2 percent in March 2023,” Mr Edgar M Niyimpa, the Ubos principal statistician, said.

In addition, the Annual Food Crops and Related Items inflation slowed down to 25.3 percent in the year ending April 2023 compared to 26.7 percent registered in the year ended March 2023.

This was mainly due to whole cassava inflation that registered 51.7 percent in April 2023 compared to 65.8 percent registered in March 2023, tomatoes inflation that registered 26.3 percent in April 2023 compared to 33.3 percent in March 2023, and egg plants & bitter tomatoes inflation that registered 13.0 percent in April 2023 compared to 30.1 percent in March 2023

According to the Classification of Individual Consumption, the main drivers to the registered inflation were commodities under; ‘Food and Non- alcoholic beverages’ whose inflation registered 18.5 percent in the year ending April 2023 compared to 20.9 percent registered in the year ended March 2023; and Housing, Water, Electricity, Gas and Other Fuels whose inflation registered 2.2 percent in the year ending April 2023 compared to 4.3 percent registered in the year ended March 2023.

Others were; furnishings, household equipment and routine household’ whose inflation registered 2.8 percent in the year ending April 2023 compared to 5.4 percent registered in the year ended March 2023; Restaurants and Accommodation Services whose inflation registered 5.2 percent in the year ending April 2023 compared to 6.3 percent registered in the year ended March 2023 and ‘Recreation, Sport and Culture’, whose inflation registered 1.7 percent in the year ending April 2023 compared to 3.3 percent registered in the year ended March 2023.

Transport registered 3.9 percent inflation in April 2023 compared to 4.3 percent registered in March 2023 while alcoholic Beverages, Tobacco and Narcotics registered 8.7 percent in April 2023 compared to 9.1 percent registered in March 2023.

 Clothing and Footwear registered 3.5 percent in April 2023 compared to 3.7 percent registered in March 2023.

However, there was an increase in price of commodities under; ‘Information and Communication’ whose inflation was registered at 2.3 percent compared to 1.2 percent in March 2023; Personal Care, Social Protection and Miscellaneous Goods’ whose inflation was registered at 10.1 percent compared to 8.6 percent in March 2023.

In addition, Insurance and Financial Services inflation registered 4.0 percent for the year ending April 2023 compared to minus 0.3 percent for the year ended March 2023.