Overview:

Ugandan households faced higher costs for food and charcoal in December even as the national inflation rate remained stable at 3.1 percent.

KAMPALA, Uganda — Uganda’s annual inflation rate remained steady at 3.1 percent in December, matching the rate recorded in November, according to data released Wednesday by the Uganda Bureau of Statistics.

Aliziki K. Lubega, the UBOS director of economic statistics, told reporters at Statistics House that while overall inflation is moderate and stable, food and energy costs continue to require close monitoring because of their direct impact on household budgets.

The agency reported that food crop inflation rose to 4.4 percent in December, up from 4.0 percent the previous month. The increase was driven by significant price jumps for staples and produce, including a 35.7 percent increase in the cost of cabbage and a 25.2 percent rise for green peppers. Fresh cassava and passion fruits also saw price hikes of 8.9 percent and 11.1 percent, respectively.

Energy, fuel and utilities inflation climbed to 1.4 percent, compared to 0.6 percent in November. UBOS attributed this to higher costs for firewood, which rose 4.9 percent, and charcoal, which increased 5.3 percent. Petrol prices rose 1.4 percent during the month.

Despite the rise in food and fuel costs, the headline inflation rate was balanced by a sharp slowdown in transport inflation, which fell to 0.1 percent from 1.4 percent in November. Prices for clothing, footwear, and restaurant and accommodation services also eased during the period.

Core inflation, which excludes volatile food crop and energy prices, edged down to 3.1 percent from 3.2 percent in November.

On a monthly basis, the general price level increased 0.5 percent from November to December, largely due to seasonal costs for vegetables and transport.

Data for the full year showed that average inflation in 2025 reached 3.6 percent, up from 3.3 percent in 2024. UBOS officials said the year-on-year increase was primarily driven by higher costs for services and nonfood items.

Geographically, price increases varied across the country. Kampala’s high-income areas recorded the highest inflation at 4.2 percent, while Mbale recorded the lowest at 1.0 percent.