Africa-Press – Uganda. The Consumer Price Index (CPI) for Uganda in the last 12 months decreased to 1.9 per cent, down from 2.1 per cent in the year ended July 2021. This followed a decline in the transportation fares coupled with low activities in recreation, sport, and culture.
The slight decline in transportation saves the traders from the burden of high spending while moving goods across the country, while low recreation, sport, and culture saves the general public from spending much on leisure activities.
The Head Macroeconomic Statistics at Uganda Bureau of Statistics (UBOS), Ms Kaudha Alizik Lubega said on August 31 that the decrease in inflation was attributed to the Annual Transport Inflation that decreased to 7.3 per cent for the 12 months to August 2021, down from 10.7 per cent in July 2021.
“In addition, annual inflation for ‘Recreation, Sport and Culture’ decreased to minus 0.3 percent in August 2021, down from 0.7 percent, and ‘Personal Care, Social Protection and Miscellaneous Goods’ decreased to 1.8 per cent in August 2021, down from 2.2 per cent in July 2021,” she said.
Ms Kaudha, however, said annual Food and Non-Alcoholic Beverages inflation during the period increased to 1.3 per cent for the 12 months to August 2021 up from 0.7 per cent in July 2021.
She explained that during the period, Annual Food Crops and Related Items Inflation decreased to 0.5 per cent in August 2021 down from 0.9 per cent in July 2021, pointing out that this was due to Annual Fruits and nuts Inflation that decreased to minus 2.1 per cent in August 2021 down from 2.6 per cent in July 2021.
Although there was a decline in food prices, household expenditure on certain items was a little high.
The CPI figures show that annual inflation for ’ Furnishings, Household Equipment and Routine Household’ increased to 1.7 per cent in August 2021, up from 1.2 per cent in July 2021, and ‘Restaurants and Accommodation Services’ increased to 1.5 per cent in August 2021, up from 1.3 per cent in July 2021.
Ms Kaudha said the core Inflation for the 12 months to August 2021 decreased to 2.2 per cent down from 2.5 per cent in July 2021.
This is attributed to Annual Services Inflation that decreased to 2.5 per cent in August 2021 down from 4.0 per cent in July 2021.
The computed CPI figures indicate that the Non-Core inflation for the 12 months to August 2021 increased to 0.1per cent up from 0.0 per cent in July 2021.
The increase is mainly attributed to; Annual Energy Fuel and Utilities Inflation (EFU) that increased to minus 0.5 per cent, up from minus 0.9 per cent in July 2021.
Ms Kaudha said the rise in EFU Inflation was due to Annual Liquid Energy Fuels Inflation that increased to 2.2 per cent in August 2021 up from 0.1 per cent in July 2021.
“Specifically, Annual Petrol increased to 7.4 per cent in August 2021 up from 4.6 per cent in July 2021, and Diesel increased to 4.8 per cent in August 2021 from 2.0 per cent in July 2021,” she said.
Analysis by geographical areas and income groups reveals that Arua registered the highest Inflation of 2.9 per cent for the 12 months to August 2021 up from 2.5 per cent in July 2021.
This was driven by the annual ‘Food and Non-Alcoholic Beverages’ Inflation that increased to 4.5 per cent in August 2021 up from 3.3 per cent registered in July 2021.
The second-highest inflation was registered in the basket of Kampala High Income group at 2.8 per cent for the 12 months to August 2021 up from 2.6 per cent in July 2021.
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