KAMPALA – The cost of living in Uganda continued to rise in July, with inflation increasing to 4.0 percent, up from 3.7 percent in June, according to the latest figures released by the Uganda Bureau of Statistics (UBOS).
UBOS said the increase was mainly caused by higher prices for fuel, electricity, water and some food items.
The biggest increase came from Energy, Fuel and Utilities, where inflation jumped to 14.9 percent from 11.9 percent in June. Water charges rose sharply by 17.8 percent, while electricity prices increased by 2.2 percent. Petrol prices were 29.0 percent higher than a year ago, while diesel prices increased by 39.0 percent.
Food prices also started rising again after remaining stable in June. Inflation for food crops and related items increased to 1.6 percent, driven by higher prices of fresh leafy vegetables, cassava and passion fruits.
Despite the increase in overall inflation, some food items became cheaper during the month. UBOS said prices of matooke, tomatoes, pineapples, onions and Irish potatoes fell in July compared to June, helping to slow the monthly increase in food costs.
The report also showed that the country’s core inflation, which excludes food crops and energy prices, remained unchanged at 3.4 percent. Prices for services, including restaurants and accommodation, rose more slowly than in June.
Looking at different parts of the country, Kampala’s high-income areas recorded the highest annual inflation at 5.0 percent, mainly because of rising housing, utility and transport costs. Jinja followed at 4.2 percent, while Fort Portal recorded the lowest inflation at 2.7 percent.
The report shows that although some food prices have eased, many Ugandans are still spending more on transport, fuel, electricity and water than they did a year ago.
UBOS also reported changes in the national average prices of common household items. A litre of petrol averaged Shs6,538 in July, up from Shs4,710 a year earlier, while diesel averaged Shs6,603, compared to Shs4,354 last year. On the other hand, matooke fell to Shs916 per kilogram from Shs1,061 in June, while tomatoes also became slightly cheaper.