UBOS Reports Lower Factory Inflation in January 2026

KAMPALA — Producer prices in Uganda’s manufacturing and utilities sectors increased at a slower rate in January 2026, according to the latest report from the Uganda Bureau of Statistics (UBOS).

Annual inflation slows to 0.4%

While presenting findings to the press at Statistics House in Kampala on Friday, Irene N. Musiitwa, a Senior Statistician for Construction Input Price Indices (CIPI) at UBOS, said the Annual Headline Inflation, measured by the Producer Price Index for Manufacturing and Utilities (PPI-M&U), was 0.4 percent in the 12 months to January 2026.

This is lower than the 0.8 percent recorded in the year ended December 2025.

The slowdown was mainly due to reduced price increases in the manufacturing sector. Annual inflation in manufacturing dropped to 0.5 percent in January 2026, down from 0.9 percent in December 2025.

Food manufacturing drives changes

The biggest influence came from the manufacture of food products. Annual inflation for food products stood at 1.9 percent in January 2026, compared to 2.9 percent in December 2025.

Within food manufacturing, vegetable and animal oils and fats recorded minus 3.5 percent, down sharply from 2.3 percent in December while processing and preserving of fish slowed to 3.2 percent, compared to 9.1 percent in December.

This means factory prices for some food items rose more slowly, while others even declined.

Utilities prices decline further

The utilities sector — which includes electricity and water — recorded minus 0.9 percent annual inflation in January 2026. This was a deeper drop than the minus 0.4 percent recorded in December.

Electricity generation was the main reason for the decline. Its annual inflation fell to minus 3.0 percent, compared to minus 1.9 percent in December.

Monthly inflation rises slightly

On a month-to-month basis, producer prices increased by 0.3 percent in January 2026. This is slightly higher than the 0.1 percent increase recorded in December 2025.

Manufacturing prices rose by 0.3 percent in January, mainly driven by food products.

For example, processing and preserving of fish increased by 3.0 percent in January, compared to a 0.6 percent decrease in December.

However, utilities recorded a 0.2 percent decrease in January, mainly due to a 0.4 percent drop in electricity generation prices.

Overall index level

The overall Producer Price Index for Manufacturing and Utilities stood at 125.14 in January 2026, up slightly from 124.81 in December 2025 (base year 2016/17 = 100).

UBOS Executive Director and Chief Statistician, Dr Chris N. Mukiza, said the figures reflect moderate price movements in the production sector at the start of 2026.

The Producer Price Index measures changes in prices received by producers for their goods and services, and it is an important indicator of inflation trends in the economy.