The annual inflation rate in Uganda slightly decreased to 1.9% in September compared to 2.1% recorded in August 2019, the consumer price index (CPI) report indicates.
The figures contained in the CPI report - the official measure of inflation; were released by the Uganda Bureau of Statistics (UBOS) on Monday.
The UBOS principal statistician in charge of prices, Vincent Nsubuga, who released the figures at the bureau’s head offices in Kampala, attributed the decline in annual inflation to annual food crops and related items which decelerated further to -3.0% compared to -1.4% registered during the period under review.
"Annual food crop inflation dropped due to decline in the prices of fruits that declined to minus 13.8% in September 2019 compared to minus 9.5% recorded in August 2019," Nsubuga said.
Inflation has been below the Bank of Uganda’s 5% target since the beginning of the year. The rate was recorded at 3.4% in June 2019 and 2.6% in July and 2.1% in August.
The headline inflation rate ease has now reached its lowest level since May last year.
Nsubuga added that core inflation excludes food, fuel and metered water which are volatile to price changes slightly declined to 2.5% in September down from the 2.7% recorded in August 2019.
Core inflation is used by the Central Bank as a monetary tool and in August 2019, it maintained the benchmark rate for the fifth time in a row at 10%.
On the other hand, annual energy, fuel and utilities (EFU) increased to 2.5% in September 2019 compared to 1% recorded in August 2019.
Nsubuga noted that EFU increased due to solid fuels (firewood and charcoal) that registered 8.5% in September compared to 4.0% recorded during the year ended August 2019.
On a monthly basis, consumer prices edged up to 0.7% from a 0.45 rise recorded the previous month.
Kenya’s inflation rate consumer inflation in East Africa's biggest economy slowed to 5% in August 2019 from 6.3% in July 2019.
Tanzania’s inflation decreased to 3.6% in August 2019 from 3.7% registered in July.
Adopted from New Vision: https://www.newvision.co.ug/new_vision/news/1507845/uganda-inflation-drops-19-september