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Inflation Rate Rises To 3.9% In September

The country’s annual core inflation from the month of September was at 3.9 per cent, up from 3.4 per cent in August, which was largely attributed to depreciation of the Shilling against the dollar.

While releasing the Consumer Price Index data in Kampala on Saturday, Mr Vicente Nsubuga Musoke, the Principle Statistician at the Uganda Bureau of Statistics, also said an increase in prices of imported processed foods was to blame for the inflationary rise.

Core inflation excludes volatile items such as fuel, energy and metered water.

Mr Nsubuga said in August, inflation in processed foods was at 2.3 per cent but rose up to 3.4 per cent in September.

“In particular, clothing and footwear inflation rose to 7.2 per cent. However, services inflation declined to 4.5 per cent in September compared to 5.3 per cent August,” he said.

Prices of clothes and footwear, he said, increased due to depreciation of the shilling against the dollar.

The shilling has in the last three weeks experienced excessive pressure losing by about Shs 68 against the dollar. The unit on Friday closed at Shs 3,818 compared to Shs 3,750 at the close of August.

However, the 3.9 per cent inflation is still below the Central Bank’s target of 5 per cent.

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Bank of Uganda on Wednesday is expected to announce the Central Bank Rate, a key tool that is used to control inflationary pressures.

Headline inflation declined to 3.7 per cent in September up from 3.8 per cent in August.

This was because of lower food crop prices registered in the period.

Food crops and related items inflation decelerated to -2.2 per cent in August compared to -1.2 in August.

However, prices of imported fuels such petrol and diesel in-creased due to an increase in international prices and depreciation of the shilling.

 

 

 

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