KAMPALA – Inflation for the month December 2019 increased to 3.6% from 3% registered in November 2019, a report released by the Uganda Bureau of Statistics shows.
According to the report, the rise was due to food crops inflation that rose to 3.4% and energy, fuels and utilities inflation that rose to 7.4%.
“The energy, fuels and utilities inflation has risen to 8.8% in December 2019 from the 7.4% registered in November 2019. The annual core inflation (This excludes food crops) rose to 3% from 2.9% registered in November,” the report.
The report indicates that Masaka registered the highest Inflation in the year ending December 2019, recorded at 6.8% as compared to 5.7% recorded in November 2019.
“Gulu was 2nd highest at 4.8%, though lower than the 6.5% recorded in November 2019. Mbale recorded the least inflation recorded at 2.5%,” the report adds.
Average input prices into the whole sector level decreased by 0.4% in the year ending October 2019 compared to a 3.6% increase in the year ended October 2018. For September 2019, prices decreased by 0.2% compared to a 3.1% rise in the year ended September 2018.
The annual average producer prices for manufactured goods and utilities decreased by 1.1% in October 2019 compared to a 2.4% decrease in September 2019. Customers (mostly wholesalers) who bought directly from factories paid less by 1.1% in the year ending October 2019.
Early this month, Bank of Uganda (BoU) revealed that the decline in aggregate demand in the country this financial year has caused a drop in the economy.
Bank of Uganda Deputy Governor Louis Kasekende told media that economic growth has slowed down but insisted the rate at which it has slipped is still good enough for Uganda.
“The reason why we are witnessing a slower growth rate is because of low aggregate demand in the economy compared to last year, which is contributing to a slowdown in economic growth rate,” he said.
