Sub-Saharan state’s inflation rate for the year ending July 2017 concluded with another flop, a successive second drop for Uganda at 5.7% in comparison to 6.4% recorded for the previous month.
The Uganda Bureau of Statistics attributes the drop to a decline in annual food crops inflation to 12.9% from 18.1% in June.
The main cause of the drop in food prices was vegetables inflation which declined to 4.9% versus 9.6% the previous month. This was because of an increase in the supply of vegetables, according to the Ubos principal statistician, Vincent Nsubuga Musoke.
Fruits inflation also declined to 24.2% compared to the 32.4% recorded the previous month, which was also attributed to “increased supply to the market during the month,” particularly of matooke.
Core inflation, which is closely watched by the Bank of Uganda, declined to 4.5% in the year ending June 2017 from the 4.9% recorded in the previous month. The biggest contributor to the fall was other goods inflation which declined to 4.9% from 5.6% in June.
Energy, fuel, and utilities inflation rose to 7.8% in the year from 5.7% in June, mainly as a result of an increase in the annual prices of solid fuels (charcoal and firewood) which rose by 6.7% compared to 2.7% in the previous month.
Inflation in July declined by 0.5% compared to 0.6% in June, mainly due to food crops and related items inflation which declined by 2.9% from a 7.5% decline the previous month.
Core inflation in the month fell 0.3% versus a 0.4% rise in June.
The only rise in July was recorded for energy, fuel, and utilities inflation at 1.1% from the 0.1% recorded in June.