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Uganda’s Inflation Climbs to 3.9% in June, Driven by Rising Food and Utility Prices

Mourice Muhoozi by Mourice Muhoozi
1 year ago
in National, News
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Headline inflation in Uganda for June 2024 rose to 3.9%, up from 3.6% in May 2024, according to the Uganda Bureau of Statistics (UBOS). 

This increase has significantly impacted the prices of essential commodities such as tilapia fish, laundry soap, and chicken, as outlined in the latest Consumer Price Index (CPI) report for the 12 months ending in June 2024.

The report highlighted notable price hikes in specific food items. The price of fresh tilapia surged to 8.7% in June, up from 3.8% in May. Chicken prices saw a substantial increase, rising by 9.1% in June compared to 4.6% in May.

 Laundry soap prices also experienced an upward trend, albeit a less severe one, with a decrease of -4.6% in June, an improvement from the -7.6% registered in May.

Edgar Mfite Niyimpa, Principal Statistician for Prices, emphasized that the rise in headline inflation was primarily driven by core inflation, which increased to 3.8% in June from 3.7% in May. Additionally, the annual inflation rate for energy, fuel, and utilities climbed to 10.3% in June, up from 9.5% in May.

This was largely attributed to a significant rise in firewood prices, which jumped to 23.7% in June from 13.8% in May. Petrol prices also saw an increase, reaching 9.0% in June from 8.1% in May, while diesel prices rose by 2.0% in June compared to 1.1% in May.

Contrary to the overall inflation trend, the monthly inflation rate for food crops and related items decreased by 2.5% in June, down from a 1.2% drop in May.

This decline was driven by significant reductions in the prices of cooking bananas, which fell by 14.5% in June compared to a 13.1% drop in May. Tomato prices also decreased by 6.7% in June, following an 11.2% rise in May.

The UBOS report also revealed regional variations in inflation rates. Kampala registered the highest annual inflation rate at 5.2% in June, up from 4.6% in May.

 This increase was largely due to a rise in food and non-alcoholic beverages inflation, which went from 1.3% to -0.4%. Jinja followed closely with an inflation rate of 5.1% in June, up from 4.7% in May, driven by an increase in the annual inflation rate for household furnishings and routine maintenance, which rose to 4.1% in June from 2.2% in May. 

Meanwhile, Mbale Center recorded the lowest annual inflation rate at 1.8% for the year ending June 2024, down from 2.7% in May. This decrease was attributed to a significant drop in the annual inflation rate for food and non-alcoholic beverages, which fell to 2.2% in June from 9.8% in May.

The latest UBOS CPI report underscores the impact of rising inflation on essential goods and services in Uganda. 

As prices for key commodities and utilities continue to climb, the economic burden on consumers remains a significant concern, prompting close monitoring and potential policy responses to mitigate further inflationary pressures.


Do you have a story in your community or an opinion to share with us: Email us at editorial@watchdoguganda.com
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