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Uganda’s Inflation Down to 5.2%

Today August 31, the Uganda Bureau of Statistics released its  Annual Headline Inflation for the year ending August 2017 with the inflation rate standing at  5.2 percent, a decrease from the 5.7 percent recorded during the year ended July 2017.

This represents a 0.5 percentage point drop from the previous month.

This drop is due to the decline in Annual Food Crops Inflation which is recorded at 11.8 percent for the year ending August 2017 compared to 12.9 percent for the year ended July 2017.

The driver for the lower Annual Food Crops Inflation was Fruits Inflation that declined to 17.4 percent for the year ending August 2017 compared to the 24.2 percent registered during the year ended July 2017.

Like the previous month, inflation headline by income groups and geographical areas showed that districts of Fort Portal and Arua registered the highest Annual Inflation of 9.2 percent for the year ending August 2017 though lower than 9.9 percent recorded for the year ended July 2017 and 8.9 percent for the year ending August 2017 compared to 7.7 percent recorded for the year ended July 2017 respectively.

Gulu district registered the third highest annual inflation of 7.9 percent for the year ending August 2017 though lower than 9.0 percent recorded for the year ended July 2017.

This drop is driven by Annual Inflation for Food and nonalcoholic beverages that registered 18.1 percent for the year ending August 2017 compared to the 19.3 percent recorded for the year ended July 2017.

Jinja and Kampala high income areas suffered the least inflation.

The second highest inflation was registered in Arua.

The main driver was high Annual Inflation for Food and nonalcoholic beverages that registered 17.7 percent for the year ending August 2017 compared to the 15.1 percent for the year ended July 2017.

The report also shows that Inflation decreased in sectors like in communication, recreation and culture while remaining stable in sectors like clothing and foot ware and restaurants and hotel.

However, there was a slight inflation percentage increase in sectors like education, by 0.5%, transport by 0.1%, health by 0.5%, real estate by 0.5%, foods by 0.7 and alcoholic  beverages by 0.2%.

While addressing a press conference at the statistics house today, Sam Kaisiromwe, a senior statistician at UBOS, said these numbers can be used by the public to determine on what and where to spend as well as explain the increase in place and what to expect in future.

“This information is given monthly so that employees especially those who have bargaining powers can use them to demand for an increase. For example if there is an increased inflation in the transport sector, or housing, it means that your transport fare or your rent will probably increase,” Kaisiromwe noted

He asked the public to always show interested in such issues because they determine the economic status of any economy.

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