Annual Headline Inflation Remains at 2.9% as Core Inflation Drops to 3.8%

The Annual Headline Inflation for the year ending November 2024 was registered at 2.9%, the same rate recorded in the year ended October 2024, according to the Uganda Bureau of Statistics (UBOS).

The Annual core inflation reduced to 3.8% in November compared to the 3.9% recorded in the year ended October 2024.

Headline inflation is usually quoted on an annualised basis (repeated for 12 months) while Core inflation is a measure of inflation that excludes volatile price components, like food and energy, to provide a more stable, long-term view of inflation.

According to UBOS, the Annual Inflation as measured by the Consumer Price Index for Uganda for the 12 months to November 2024 is 2.9 per cent, the same rate registered in the year ending October 2024.

This was mainly due to Annual Services Inflation that recorded 5.9 percent in November 2024 compared to 6.2 percent registered in October 2024.

The main driver of Services Inflation was Passenger Transport Services Inflation that registered 2.4 percent in the year ending November 2024 compared to 3.8 percent registered in the year ended October 2024.

The other driver was Inpatient Care Services Inflation registered 6.6 percent in the year ending November 2024 compared to 17.9 percent registered in the year ended October 2024.

In addition, Annual Other Goods Inflation recorded 2.2 percent in the year ending November 2024 compared to 2.1 percent registered in the year ended October 2024.

This was mainly due to Maize Flour prices that registered minus 18.2 percent in November 2024 compared to minus 24.6 percent registered in October 2024 and Tilapia (Fresh) prices that registered 17.2 percent in November 2024 compared to 10.6 percent registered in October 2024.

Annual Energy Fuel and Utilities (EFU) Inflation was recorded at 2.2 per cent in the year ending November 2024 compared to 3.3 per cent registered in the year ended October 2024.

This was mainly due to Liquid Energy Fuels Inflation that recorded minus 7.8 per cent in the year ending November 2024 compared to minus 5.4 per cent registered in the year ended October 2024, driven mainly by Petrol and Diesel prices that decreased on an annual basis in November 2024 by minus 9.4 per cent compared to minus 5.9 per cent in October 2024 and minus 8.3 per cent compared to minus 7.5 per cent in October 2024 respectively.

Kerosene prices decreased by minus 3.7 per cent compared to minus 2.4 per cent in October 2024.

In addition, Solid fuels inflation was recorded at 14.5 per cent in November 2024 compared to 15.5 per cent registered in October 2024 mainly due to Charcoal prices that increased by 13.9 per cent in November 2024 compared to 17.0 per cent recorded in October 2024 whereas firewood prices increased by 16.8 per cent compared to 13.3 per cent in October 2024.

Annual Food Crops and Related Items Inflation recorded minus 4.0 per cent in the year ending November 2024 compared to minus 5.3 per cent registered in the year ended October 2024.

This was mainly attributed to a drop in the prices of Tomatoes (by minus 27.1 per cent compared to minus 14.2 per cent in October 2024), Carrots (by minus 11.2 per cent compared to minus 4.7 per cent in October 2024) and Fresh Leaf Vegetables -Nakati, Dodo, Bbugga prices increasing by 0.6 per cent compared to 6.3 per cent in October 2024, Bananas Standard (Bogoya) prices increasing by 1.1 per cent compared to 5.7 per cent in October 2024.