Uganda’s inflation rises to 3.7% in June as fuel, transport costs climb

KAMPALA — Uganda’s annual headline inflation rose to 3.7 percent in June 2026 from 3.2 percent in May, driven mainly by rising fuel prices, transport costs and education charges, the Uganda Bureau of Statistics (UBOS) has said.

According to the June Consumer Price Index report released on Tuesday, core inflation—which excludes volatile food crop prices and energy products—increased to 3.4 percent from 3.0 percent the previous month, while inflation for Energy, Fuel and Utilities (EFU) accelerated sharply to 11.9 percent from 9.1 percent.

UBOS said higher prices for petroleum products significantly contributed to the increase in inflation.

Annual liquid energy fuels inflation climbed to 26.2 percent in June from 16.6 percent in May. Petrol prices rose by 26.3 percent year-on-year, diesel by 37.3 percent, kerosene by 31.7 percent and cooking gas by 5.4 percent.

The statistics agency also attributed the rise in headline inflation to higher transport and education costs. Passenger transport services inflation increased to 11.9 percent in June from 9.9 percent a month earlier, while education services inflation rose to 5.7 percent from 4.1 percent.

Food prices, however, remained largely stable.

Annual inflation for food crops and related items was unchanged at 0.0 percent compared to 0.2 percent recorded in May, helped by lower prices for staple foods including matooke, dry beans, onions and carrots.

According to UBOS, matooke prices declined by 6.6 percent over the year, dry beans by 7.2 percent, onions by 4.7 percent and carrots by 7.6 percent, helping to cushion households from steeper increases in overall consumer prices.

By expenditure category, transport recorded one of the fastest increases, with annual inflation rising to 8.8 percent from 6.7 percent in May. Inflation also increased for food and non-alcoholic beverages, housing, water, electricity and gas, furnishings and household equipment, and restaurant and accommodation services.

Despite the monthly increase, average inflation for the 2025/26 financial year eased to 3.3 percent, down from 3.5 percent recorded in the previous financial year.

UBOS attributed the lower annual average inflation to moderation in core inflation, which averaged 3.4 percent during FY2025/26 compared to 3.9 percent in FY2024/25.

The latest figures indicate that while overall inflation remains within the Bank of Uganda’s medium-term target, rising fuel and transport costs continue to exert upward pressure on consumer prices.