Uganda’s March 2024 inflation declines to 3.3%

Uganda’s annual inflation as measured by the Consumer Price Index for the 12 months to March 2024 declined by one percentage point to 3.3 percent, compared to 3.4 percent registered in the year ended February 2024.

The Uganda Bureau of Statistics, which released the data on Thursday, 28 March 2024, attributed this to a slight decline in prices of major items such as fuel and food crops such as beans.

For instance, the Annual Food Crops and Related Items Inflation decreased to minus 0.4 percent in the year ending March 2024 compared to 0.5 percent registered in the year ended February 2024.

This is mainly attributed to the decrease in prices of beans by 3.4 percent in the year ending March 2024, compared to the 6.9 percent increase registered in February 2024. Milk prices decreased by 3.5 percent in the year ending March 2024 compared to the 3.9 percent rise registered in February 2024. Carrots prices decreased by 10 7 percent in the year ending March 2024 compared to the 16.3 percent rise registered in February 2024.

The Annual Energy Fuel and Utilities (EFU) inflation increased at a slower rate of 7.6 percent in the year ending March 2024 compared to 8.0 percent registered in the year ended February 2024.

This was due to the increase in charcoal prices by 17.7 percent in March 2024 compared to 19.9 percent in February 2024, firewood prices increased by 15.9 percent in March 2024 compared to 15.1 percent in February 2024 and Petrol prices increased by 5.4 percent in March 2024 compared to 5.7 percent in February 2024.

The main driver to Annual Core Inflation was the Annual Services inflation that increased to 5.5 percent in the year ending March 2024 compared to 5.4 percent registered in the year ended February 2024. The increase in the Annual Services Inflation was due to Passenger Transport Services Inflation that increased to 2.6 percent in the year ending March 2024 compared to 1.2 percent registered in the year ended February 2024.

Financial Services Inflation increased to 13.4 percent in the year ending March 2024 compared to 0.0 percent registered in the year ended February 2024.

Additionally, Annual Other Goods Inflation increased at a slower rate of 1.6 percent in the year ending March 2024 compared to 1.8 percent recorded in the year ended February 2024.

This was due to the increase in the prices of Dried Kapenta (Mukene) by 6.9 percent in March 2024 compared to minus 6.1 percent in February 2024, Local Gin (Waragi Crude) prices increased by 6.0 percent in March 2024 compared to 2.0 percent recorded in February 2024 and Goats Meat prices increased by 14.0 percent in March 2024 compared to 9.3 percent recorded in February 2024.