Decline in food prices lowers Uganda’s April inflation

Uganda’s annual inflation as measured by the Consumer Price Index for Uganda for the 12 months to April 2024 declined by 3.2 percent compared to 3.3 percent registered in the year ended March 2024.

According to the Uganda Bureau of Statistics (UBOS), this is largely attributed to the decline in prices of annual food crops and related items whose inflation decreased to minus 2.4 percent in the year ending April 2024 compared to minus 0.4 percent registered in the year ended March 2024. This was mainly attributed to the decrease in prices of bananas by minus 11.7 percent in the year ending April 2024 compared to 8.2 percent registered in March 2024.

Dry beans’ prices decreased by minus 8.5 percent in the year ending April 2024 compared to minus 3.4 percent registered in March 2024. Sweet potato prices decreased by minus 19.9 percent in the year ending April 2024 compared to minus 12.0 percent registered in March 2024.

The Annual Core inflation registered 3.5 percent in the year ending April 2024 compared to 3.4 percent registered in the year ended March 2024.

The main driver of Annual Core Inflation was the Annual Other Goods Inflation that increased to 2.0 percent in the year ending April 2024 compared to 1.6 percent recorded in the year ended March 2024. This was due to the Fish and other seafood inflation that increased to 16.5 percent in April 2024 compared to 10.1 percent in March 2024.

Specifically, Mukene prices increased by 28.8 percent in April 2024 compared to 6.9 percent in March 2024 and fresh tilapia prices increased by 15.6 percent in April 2024 compared to 5.8 percent recorded in March 2024.

Refined oil prices registered minus 8.6 percent in April 2024 compared to minus 14.1 percent recorded in March 2024 and Local chicken prices increased by 3.6 percent in April 2024 compared to 0.3 percent recorded in March 2024.

Additionally, Annual Services Inflation increased at a slower rate of 5.4 percent in the year ending April 2024 compared to 5.5 percent registered in the year ended March 2024.

This was mainly due to the increase in the prices of Domestic flights by 14.5 percent in the year ending April 2024 compared to 5.5 percent registered in the year ended March 2024. Hotel and Lodging Accommodation Services Inflation increased to 7.6 percent in the year ending April 2024 compared to 1.9 percent registered in the year ended March 2024.

Annual Energy Fuel and Utilities (EFU) Inflation increased to 7.9 percent in the year ending April 2024 compared to 7.6 percent registered in the year ended March 2024. This was due to the increase in Electricity charges by 1.4 percent in April 2024 compared to minus 1.0 percent in March 2024, Petrol prices increased by 6.9 percent in the year ending April 2024 compared to 5.4 percent in the year ended March 2024 and Charcoal prices increased by 18.8 percent in the year ending April 2024 compared to 17.7 percent in the year ended March 2024.