The increase in inflation rates has been mainly attributed to cabbage prices, which have risen abnormally. The annual inflation, as measured by the consumer price index for the last 12 months ending July 2024, was registered at 4.0 percent, up from 3.9 percent in the same period ending June.
According to the report issued by the Uganda Bureau of Statistics (UBOS), cabbage prices rose by 32.5 percent in the last 12 months ending July, compared to 14.4 percent recorded in June. “Cabbage prices increased by 32.5 percent in the year ending July 2024, compared to 14.4 percent registered in June 2024,” reads part of the report.
It further indicates that the annual inflation rate for other goods and related items was registered at 2.0 percent in July, up from 0.5 percent in June. This category, which includes cabbage, had the highest inflationary rate increase compared to other categories.
In the same category, prices of bananas increased at the rate of 3.6 percent, up from minus 10.4 percent last month. The Irish potato rate was recorded at 17.2 percent, up from 1.6 percent in June, and dry beans also increased to minus 5.2 percent, higher than minus 7.2 percent in June.
Meanwhile, the annual services inflation rate registered only a 0.1 percent increase from June to July. “The annual services inflation was registered at 6.5 percent in the year ending July 2024, compared to 6.1 percent in the year ending June 2024,” the report states.
The main driver of this slight increment was passenger transport services inflation, which stood at 8.2 percent, up from 7.0 percent. This was followed by accommodation services at 4.8 percent, up from 4.4 percent, and recreation, sports, and culture services inflation, which increased to 7.2 percent from 5.8 percent in June.
The annual inflation rate for other goods remained at 2.0 percent in July, the same as in June. The report attributes this stagnation mainly to the prices of second-hand vehicles, which were recorded at minus 0.7 percent, compared to minus 3.0 percent in June. Refined oil prices had a rate of minus 3.4 percent, compared to minus 5.7 percent in June.
However, the report also indicated some decreases. Under the Annual Fuel and Utilities (EFU) category, the combined inflation rate was recorded at 6.2 percent, lower than the 10.3 percent in June. This decrease was mainly attributed to the liquid fuels inflation rate, which was recorded at 0.2 percentage points lower in a 12-month comparison (5.1 percent compared to 5.3 percent). Specifically, petrol increased by 8.8 percent, down from 9.0 percent, and diesel by 1.5 percent, compared to 2.0 percent.
For solid fuels, the rate was recorded at 13.3 percent, lower than 21.1 percent in June. Charcoal prices increased by 12.5 percent, down from 20.6 percent in June, and firewood by 15.9 percent, down from 23.7 percent.
–URN