UGANDA, Kampala | Real Muloodi News | Uganda’s Annual Headline Inflation for the year ending September 2023 has shown a further decline, reaching 2.7%.
This marks a decrease from the 3.5% reported in August 2023. The slowdown can be attributed to the diminishing Annual Core Inflation, which has decelerated to 2.4%, down from 3.3% in August 2023.
In an interesting development, the Uganda Bureau of Statistics (UBOS) has reported on the Annual Inflation measured by the Residential Property Price Index for the four quarters leading up to Q1 FY2023/24.
This index showed an inflation rate of 5.7%, which is a significant improvement from the -7.6% recorded in Q4 FY2022/23.
In specific regions, Kampala Central and Makindye witnessed substantial inflation, rising to 19.2% for the year ending Q1 FY2023/24, compared to -15% in Q4 FY2022/23.
Edgar Niyimpa, Principal Statistician, mentioned that Residential Properties in ‘Kawempe and Rubaga’ and Nakawa reported rates of 2.8% and 0.6%, respectively, for the year ending Q1 FY2023/24. This was compared to 3.9% and -6.35% registered in Q4 FY2022/23.
Additionally, the Construction Sector Inflation, as measured by the Construction Input Price Index for the 12 months leading up to August 2023, showed a rate of 1.8%, a slight decrease from the 2.0% reported for the year ending July 2023.
Irene Musiitwa, from UBOS’ Business and Industry Statistics division, attributed this trend to inputs for specialised construction activities, including demolition, site repair, and other activities such as electrical, plumbing, and construction installations.
According to Aliziki Khauda Lubega, the Director of Micro-economics Statistics, several key consumer goods experienced a decline in annual inflation, including rice, mukene (small fish), beans, soap, cassava, matooke (green bananas), mangoes, and maize flour.
Even items like charcoal, petrol, and diesel saw a decrease in inflation on a year-to-year basis.
While the rate declined, the monthly headline inflation slightly increased, rising from 0.6% in August 2023 to 0.7%.
Similarly, monthly core inflation saw a small uptick, going from 0.2% in August 2023 to 0.3%.
Monthly inflation for diesel and petrol also experienced an increase compared to the previous month.
Looking at regional variations, Fort Portal recorded the highest rates at 5.1% for the 12 months leading up to September 2023, although it decreased from the 6.0% reported in August 2023.
In contrast, Kampala registered the lowest rates at 2.0% for the same period, down from 2.5% in August 2023.
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