KAMPALA — Uganda’s inflation rate increased to 4% in July 2024, according to data from the Uganda Bureau of Statistics (Ubos) released on July 31. This marks a rise from the 3.9% recorded in June 2024 and is the highest level since July 2023.
The Consumer Price Index (CPI) data indicates that this increase was primarily driven by a rise in core inflation, which excludes the often-volatile food and energy prices. Core inflation rose to 4% in July, up from 3.8% the previous month.
Despite this uptick, inflation in Uganda had been relatively stable over recent months. This stability can be attributed to the tight monetary policy maintained by the Bank of Uganda and a favorable supply of domestic food products.
Samuel Echoku, the head of the macroeconomic statistics department at Ubos, commented on the situation, noting, “The 4% inflation rate is the first significant increase we’ve seen in the past year. This suggests that prices are rising again after a period of relative stability.”
Echoku expressed concern over this rise, highlighting the need for further investigation to understand the reasons behind the inflationary trend. “It raises concern for those managing the economy. After a period of stability, we are seeing an increase, and we may need to explore this further to determine the causes,” he said.
This development prompts a closer examination of economic policies and trends to ensure that inflation does not continue to rise, potentially affecting the broader economy and cost of living.
