Buy-Import-Export Premium Grade UGANDA VANILLA BEANS                           Buy-Import-Export Un-Refined Raw SHEA BUTTER 

Uganda Inflation hits record high

Thursday, 1st September, 2011

High food prices and the depreciation of the Uganda shilling have pushed Uganda's inflation for the year ended August to 21.4%, the Uganda Bureau of Statistics (UBOS), has said.

Overall inflation grew from 18.7% in July as core inflation, which excludes food, fuel, electricity and metered water, increased to 20% in August, from 15.6%.

This was the highest since February 1993. It was also far off the Bank of Uganda target of 5%.

"Food prices rose by 2.4% in most centres during the month, mainly due to low supplies to the market. In addition, prices of some imported goods, especially second-hand and new clothing went up because of the continued depreciation of the shilling," Chris Mukiza, the UBOS director for macro-economic statistics, told reporters at the bureau’s monthly press briefing in Kampala.

Mukiza added that the drop in the shilling value greatly contributed to the growth in core inflation by making raw material imports more expensive for manufacturers.

This resulted in an increase in the prices of most consumer products.

The shilling was currently trading at sh2818/25 against the dollar at most forex bureaus in Kampala, from sh2595/2608 in July.

"Overall inflation is not yet at the level where we can say it is out of hand since, when compared to last year’s inflation, we can see that some variables like food inflation are increasing, but at a reduced rate," Mukiza noted.

The monthly food crops inflation index dropped by 2.6%, while non-food prices rose by 2.9% due to increases in prices of bottled beer, soda, local brew and charcoal.

By Samuel Sanya: The New Vision Newspaper

Click here to post comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Africa Uganda Currency and Forex News .

Haven't yet found what you Want...?

If you haven't yet found what you were looking for or you need detailed information about the subject matter on this page


feel free to ask our business travel consultants.

Enjoy this page? Please pay it forward. Here's how...

Would you prefer to share this page with others by linking to it?

  1. Click on the HTML link code below.
  2. Copy and paste it, adding a note of your own, into your blog, a Web page, forums, a blog comment, your Facebook account, or anywhere that someone would find this page valuable.