Rice, maize flour lower Uganda’s August inflation to 3.5%

Uganda’s inflation as measured by the Consumer Price Index for Uganda for the month of August 2023 dropped to 3.5 percent compared to the 3.9 percent registered for July 2023.

Uganda Bureau of Statistics (UBOS) in a statement said the decline was mainly witnessed in food items such as rice, maize flour, silver fish (mukene), and gnuts.

For instance, rice registered 17.8 percent inflation for August 2023 compared to 24.6 percent in July 2023, maize flour registered 1.0 percent for the year ending August 2023 compared to 6.9 percent in July 2023, Mukene registered 22.3 percent for the year ending August 2023 compared to 37.3 percent and Groundnuts (pounded) registered 4.4 percent for the year ending August 2023 compared to 16.2 percent.

 In addition, Annual Services inflation declined to 2.0 percent for the year ending August 2023 compared to 2.5 percent registered for the year ended July 2023. This is attributed to Annual Passenger Transport Services inflation that decelerated to negative 8.8 percent for the year ending August 2023 compared to negative 7.0 percent registered for the year ended July 2023.

According to UBOS, the other driver to the slowdown in the Annual Inflation is the Annual Energy Fuel and Utilities (EFU) inflation that slowed down to negative 2.7 percent for the year ending August 2023 compared to negative 1.6 percent registered for the year ended July 2023.

In particular, petrol inflation registered negative 24.5 percent for the year ending August 2023 compared to negative 21.1 percent for the year ended July 2023. Diesel  slowed down to negative 22.7 percent for the year ending August 2023 compared to negative 21.0 percent for JuIy 2023.

In addition, firewood inflation slowed down to 19.6 percent for the year ending August 2023 compared to 24.3 percent for the year ended July 2023.

However, the annual food crops and related items inflation increased to 9.8 percent for the year ending August 2023 compared to 9.3 percent registered for the year ended July 2023. This is attributed to Round Onions inflation that increased to 129.8 percent for the year ending August 2023 compared to 31.4 percent for the year ended 3uIy 2023, Mangoes inflation increased to 26.1 percent for the year ending August 2023 compared to 1.0 percent registered for the year ended July 2023 and Papaya inflation increased to 18.8 percent for the year ending August 2023 compared to negative 3.6 percent registered for the year ended July 2023 and Oranges Inflation registered 5.7 percent for the year ending August 2023 compared to negative 9.1 percent registered for the year ended July 2023.

Analysis by geographical areas and income groups revealed that Arua registered the highest inflation of 6.4 percent for the 12 months to August 2023 compared to 6.7 percent recorded in July 2023.

“This was mainly driven by annual ‘Alcoholic Beverages, Tobacco and Narcotics’ inflation that increased to 6.2 percent in August 2023 compared to 0.8 percent registered in July 2023,” UBOS says.

 In addition, Annual ‘Furnishings, Household Equipment and Routine Household’ inflation registered 7.2 percent in August 2023 compared to 5.7 percent registered in July 2023.

The second highest inflation was registered in Fortportal at 6.0 percent for the 12 months to August 2023 compared to 5.4 percent recorded in July 2023. This was mainly driven by annual ‘Food and Non-Alcoholic Beverages’ inflation that registered 14.4 percent in August 2023 compared 13.5 percent registered in July 2023. In addition, Annual ’Housing, Water, Electricity, Gas and Other Fuels’ inflation registered 3.9 percent in August 2023 compared to 1.0 percent in July 2023.

The least annual inflation was registered in Mbarara at 2.5 percent for the 12 months to August 2023 compared to 3.4 percent recorded in July 2023. This was mainly due to the annual inflation for‘Food and Non-Alcoholic Beverages’ that registered 5.8 percent in August 2023 compared to 9.1 percent registered in July 2023. In addition, annual ‘Housing, Water, Electricity, Gas and Other Fuels’ inflation registered 4.3 percent in August 2023 compared to 7.1 percent in July 2023.