Overview:
According to information released by the Uganda Bureau of Statistics (UBOS), the decline in the annual inflation is largely attributed to the Annual Core inflation, which slowed down to 2.4 percent in September 2023 compared to 3.3 percent in August 2023.
Uganda’s annual inflation as measured by the Consumer Price Index for September 2023 fell to 2.7 percent compared to 3.5 percent registered in August 2023.
According to information released by the Uganda Bureau of Statistics (UBOS), the decline in the annual inflation is largely attributed to the Annual Core inflation, which slowed down to 2.4 percent in September 2023 compared to 3.3 percent in August 2023.
The main driver for the annual core inflation slowdown was the annual other goods inflation that registered 3.1 percent in September 2023 compared to 4.4 percent in August 2023.
Specifically, rice inflation registered 5.2 percent in September 2023 compared to 17.8 percent registered in August 2023, Mukene inflation registered negative 5.4 percent in September 2023 compared to 22.3 percent registered in August 2023, Sugar inflation registered 34.0 percent in September 2023 compared to 43.2 percent registered in August 2023, and Maize Flour inflation registered negative 3.8 percent in September 2023 compared to 1.0 percent registered in August 2023.
In addition, Annual Services inflation slowed down to 1.6 percent in September 2023 compared to 2.0 percent registered in August 2023. This is attributed to Annual Restaurants and Accommodation Services inflation that decelerated to 4.2 percent in the year ending September 2023 compared to 5.0 percent registered in August 2023.
The other driver to the slowdown in the Annual Inflation was the Annual Food Crops and Related Items Inflation that registered 7.9 percent in September 2023 compared to 9.8 percent registered in August 2023.
“This is attributed to Dry Beans inflation that registered 8.0 percent in September 2023 compared to 20.1 percent registered in August 2023, Cassava Fresh inflation that registered 6.0 percent in September 2023 compared to 18.9 percent registered in August 2023, Bananas(Matooke) inflation that registered negative 3.3 percent in September 2023 compared to 2.4 percent registered in August 2023 and Mangoes Inflation that registered 3.5 percent in September 2023 compared to 26.1 percent registered in August 2023,” UBOS said.
However, the Annual Energy Fuel and Utilities (EFU) inflation was registered at negative 1.2 percent in September 2023 compared to negative 2.7 percent registered in August 2023. This was mainly due to Liquid Energy Fuels inflation that registered negative 14.7 percent in September 2023 compared to negative 20.1 percent in August 2023. In particular, Petrol inflation registered negative 17.6 percent in September 2023 compared to negative 24.5 percent in August 2023. Diesel inflation slowed down to negative 19.2 percent in September 2023 compared to negative 22.7 percent in August 2023. In addition, Charcoal inflation slowed down to 15.9 percent in September 2023 compared to 22.0 percent registered in August 2023.