Uganda’s August inflation holds at 3.8%

Uganda’s annual inflation rate for the year ending August 2025 remained steady at 3.8 percent, supported by falling prices of mangoes, passion fruits, and other food items, according to the Uganda Bureau of Statistics (UBOS).

UBOS reported that while prices of several goods and services increased, declines in selected fruits and staples offset these rises, keeping the headline figure stable compared to July.

“The price of mangoes dropped by 6.1 percent in August, compared to a 14.5 percent increase in July. Passion fruits also fell by 6.4 percent, following a 0.9 percent rise the previous month,” the report stated.

Other foods contributed to easing inflation. Fresh beans declined by 12.9 percent in August after a 2.2 percent increase in July, while dried fish fell by 5.7 percent following a 2.0 percent rise. Rice inflation also eased to 4.1 percent from 7.3 percent in July. UBOS noted that these declines were crucial in offsetting strong increases in other items within the food basket.

At the same time, key staples became more expensive. “The price of matoke rose by 32.5 percent in the year ending August, slightly lower than the 35.3 percent recorded in July,” said Aliziki Kauda Lubega, UBOS Director for Macroeconomic Statistics, while launching the report. “Maize flour increased by 11.5 percent, down from 13.8 percent in July. Sweet potatoes recorded a sharp monthly increase of 14.2 percent in August compared to a 1.1 percent rise the previous month.”

The report highlighted that while declines in some foods were significant, rising prices of staples such as sweet potatoes and maize flour continued to pressure household spending. Energy, fuel, and utilities inflation rose to 1.1 percent in August from 0.0 percent in July, largely due to higher charcoal prices, which jumped 8.3 percent from 5.5 percent the previous month.

Petrol prices declined by 4.0 percent in August, compared with a 6.2 percent drop in July, while diesel fell by 2.0 percent, down from a 3.4 percent decline. UBOS noted that the slower pace of fuel price reductions added to inflationary pressures.

Services inflation also increased across multiple categories. Restaurants and accommodation costs rose 5.6 percent in August compared to 5.0 percent in July. Transport inflation climbed to 3.0 percent from 2.5 percent, while insurance and financial services rose to 16.4 percent from 15.7 percent. Housing, water, electricity, gas, and other fuels increased slightly to 3.0 percent from 2.8 percent, and health inflation stood at 4.9 percent, up from 4.8 percent in July.

Annual core inflation, which excludes food crops, energy, fuel, and utilities, remained at 4.1 percent, the same as in July. Within this category, services inflation rose to 5.1 percent from 4.6 percent.

On a monthly basis, headline inflation increased by 0.2 percent in August, reversing the 0.1 percent drop recorded in July. UBOS attributed this mainly to food price movements, particularly sweet potatoes, dry beans, mangoes, papaya, and green pepper. Monthly energy, fuel, and utilities inflation also rose by 0.7 percent in August compared to 0.3 percent in July, driven largely by charcoal and petrol prices.

Despite upward pressure from staples, energy, and services, declines in mangoes, passion fruits, Irish potatoes, fresh beans, and dried fish helped stabilize the national inflation rate at 3.8 percent. UBOS cautioned that inflationary pressures remain uneven across categories.

“While some households benefit from cheaper fruits and beans, others continue to feel the strain from higher prices of staples such as sweet potatoes, matoke, maize flour, and charcoal. Future inflation trends will depend on shifts in food supplies, energy prices, and service costs, and the outlook remains uncertain,” the report concluded.