Overview:

The other driver to the slowdown in the Annual inflation was the Annual Food Crops and Related Items Inflation that registered 9.3 percent in the year ending July 2023 compared to 12.3 percent registered    in the year ended June 2023.

The Annual inflation as measured by the Consumer Price index for Uganda for the 12 months to July 2023 reduced to 3.9 percent compared to the 4.9 percent for June 2023, the latest report by Uganda Bureau of Statistics (UBOS) shows.

According to the report, which was released on Monday, 31 July 2023, the slowdown in the Annual inflation is largely attributed to the Annual Core inflation, which slowed down to 3.8 percent in the year ending July 2023 compared to 4.8 percent registered in the year ended June 2023.

“The main driver to Annual Core inflation was the Annual Other Goods Inflation that registered 4.8 percent in the year ending July 2023 compared to 6.0 percent in the year ended June 2023,” UBOS said.

The main drivers were Maize Flour inflation that registered 6.9 percent in July 2023 compared to 20.9 percent registered in June 2023, cassava flour inflation that registered 13.1percent in July 2023 compared to 34.6 percent registered in June 2023, Rice inflation registered 24.6 percent in July 2023 compared to 31.7 percent registered in June 2023, and live chicken inflation registered 2.5 percent in July 2023 compared to 28.7 percent registered in June 2023.

In addition, Annual Services inflation declined to 2.5 percent in the year ending July 2023 compared to 3.3 percent registered in the year ended June 2023.

UBOS attributed this to Annual Passenger Transport Services inflation that decelerated to negative 7.0 percent in the year ending July 2023 compared to negative 3.9 percent registered in June 2023.

The other driver to the slowdown in the Annual inflation was the Annual Food Crops and Related Items Inflation that registered 9.3 percent in the year ending July 2023 compared to 12.3 percent registered    in the year ended June 2023. This is attributed to cooking bananas inflation that registered 12.5 percent in July 2023 compared to 34.0 percent in June 2023.

Irish Potatoes inflation that registered 13.1percent in July 2023 compared to 29.6 percent registered in June 2023, Cabbage inflation that registered 4.6 percent in July 2023 compared to 37.4 percent registered in June 2023 and Carrots Inflation that registered 1.6 percent in July 2023 compared to 36.2 percent registered in June 2023.

In addition, the Annual Energy Fuel and Utilities (EFU) inflation slowed down to negative 1.6 percent in the year ending July 2023 compared to negative 3.1 percent registered in the year ended June 2023.

This was mainly due to Liquid Energy Fuels inflation that registered negative 17.5 percent in July 2023 compared to negative 11.9 percent in June 2023. n particular, Petrol inflation registered negative 21.1 percent in July 2023 compared to negative 14.7 percent in June 2023.

Diesel inflation slowed down to negative 21.0 percent in July 2023 compared to negative 16.5 percent in June 2023.