Uganda news update – Inflation at new highs

INFLATION HITS 17 YEAR HIGH

The high cost of fuel in recent months has driven inflation across East Africa to new heights and in Uganda the figures have now reached 16 percent, the 7th straight rise in the consumer price index prepared by the Uganda Bureau of Statistics in conjunction with the Bank of Uganda and a level not seen since 1994. Main reasons for the continued rise in prices are the cost of petrol and diesel influencing the transportation of goods, both imports and food stuffs from the producing areas to the cities and urban centres, but also still the high general cost of food items, which however are thought to have now started a downwards trend again as the rainy season spurred greater supplies of greens and staple food items like matooke in the country. Economic observers and analysts expect inflationary trends to gradually return to single digit figures before stabilizing within the initially forecast 3-5 percent margin again.

Tourists in the meantime continue to enjoy the greater value their hard currency buys them while in Uganda for in country expenses, extras and those quintessential souvenirs.

 

%d bloggers like this: