Fuel, food costs push Uganda’s inflation to 4% in July

KAMPALA — Uganda’s annual headline inflation rose to 4.0 percent in July 2026, up from 3.7 percent in June, as higher fuel, electricity and food prices continued to drive up the cost of living, the latest figures from the Uganda Bureau of Statistics (UBOS) show.

According to the July 2026 Consumer Price Index released by UBOS, the increase was largely attributed to rising prices of energy, fuel and utilities, whose annual inflation accelerated to 14.9 percent in July from 11.9 percent in June.

The statistics body said electricity prices increased by 9.9 percent, up from 2.2 percent the previous month, while petrol prices rose by 20.6 percent compared to 2.9 percent in June. Diesel prices also increased sharply by 39.0 percent, compared to 37.3 percent recorded a month earlier.

Food prices also contributed to the rise in inflation.

Annual inflation for food crops and related items climbed to 1.6 percent in July from 0.0 percent in June, mainly driven by higher prices for fresh leafy vegetables, fresh cassava, dry beans, fresh tomatoes and onions.

However, the increase was partly offset by falling prices for some staple foods, including matooke, passion fruits, fresh maize and sweet potatoes.

Despite the increase in headline inflation, core inflation, which excludes volatile food crops and energy prices, remained unchanged at 3.4 percent.

Within core inflation, prices of other goods rose slightly to 2.3 percent from 2.2 percent, while services inflation eased marginally to 4.8 percent from 4.9 percent in June.

UBOS attributed the increase in other goods inflation to higher prices of items such as laundry soap, while restaurants and accommodation services also recorded higher prices during the month.

The latest figures show Uganda’s Consumer Price Index (CPI) increased to 142.25 in July from 141.97 in June, reflecting a steady rise in the overall price level.

Although inflation has edged upwards over the past four months—from 2.8 percent in March to 3.0 percent in April, 3.2 percent in May, 3.7 percent in June, and now 4.0 percent in July—Uganda’s inflation rate remains relatively moderate by regional standards.

The July figures come amid continued pressure on household budgets following recent increases in fuel taxes and transport costs, which have filtered through to prices of goods and services across the economy.

Economists will be watching closely to see whether rising energy prices continue to fuel inflation in the coming months, particularly as global oil prices remain volatile and domestic fuel costs stay elevated.

The latest inflation reading is also expected to be closely monitored by policymakers at the Bank of Uganda as they assess the outlook for monetary policy and price stability.