{"id":56403,"date":"2023-10-01T07:04:24","date_gmt":"2023-10-01T07:04:24","guid":{"rendered":"https:\/\/www.africa-press.net\/uganda\/all-news\/no-end-in-sight-for-cost-of-living-crisis"},"modified":"2023-10-01T08:24:20","modified_gmt":"2023-10-01T08:24:20","slug":"no-end-in-sight-for-cost-of-living-crisis","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/uganda\/all-news\/no-end-in-sight-for-cost-of-living-crisis","title":{"rendered":"No end in sight for cost of living crisis"},"content":{"rendered":"

Africa-Press – Uganda. <\/strong><\/span>Ugandans are frustrated about the rising cost of living, which has gotten worse in recent months as food and fuel prices have remained high in an economy where returns on investment have stagnated.<\/p>\n

The cost of living increased spontaneously by 0.7 percent in September compared to the 0.6 percent reported in August, according to data from the Uganda Bureau of Statistics (Ubos).<\/p>\n

\u201cThe main driver was monthly food crops and related items inflation that increased by 3.8 percent in September 2023 from [a] 3.6 percent rise recorded in August 2023,\u201d Ubos noted in a press release about consumer prices.<\/p>\n

The nation\u2019s statistical body attributes this to rising prices for vegetables, tubers, plantains, cooking bananas, and pulses, which rose by 3.5 percent in September compared to the 2.9 percent increase seen in August.<\/p>\n

Some economic experts note that the heavy rains are partly to blame for this, as they have slowed down the distribution of food crops across the nation after rendering some dangerous roads impassable.<\/p>\n

\u201cAs a result, the prices go up. The vegetable prices could have increased as well because of that broken supply link,\u201d Mr Fred Muhumuza, an economics lecturer at Makerere University Business School, said.<\/p>\n

This perhaps coincides with the Uganda National Meteorological Authority\u2019s (UNMA) rainfall outlook for September to December 2023, which expects a second major rainfall season in most parts of the country.<\/p>\n

El Nin\u0303o impact<\/b><\/p>\n

According to UNMA, this is due to the evolution of El-Nin\u0303o conditions in the central and eastern tropical Pacific Ocean, which are expected to continue until the end of the forecast period.<\/p>\n

Furthermore, the Indian Ocean Dipole (IOD) is expected to turn positive during this time.<\/p>\n

The \u201cpositive\u201d phase of the IOD typically indicates warmer sea surface temperatures in the western Indian Ocean and cooler sea surface temperatures in the eastern Indian Ocean.<\/p>\n

This phase of the IOD can have several consequences for weather and climate patterns, not only in the Indian Ocean region but also in surrounding areas<\/p>\n

Ms Madina Guloba, a senior research fellow and head of the Microeconomics Department at the Economic Policy Research Centre, says the bad weather is halting even the small food production in areas surrounding food baskets such as Masaka and Mbale districts.<\/p>\n

Ubos official data shows that the agriculture sector suffered slow growth from highs of 9.3 percent in the fourth quarter of 2022 to lows of 2.1 percent in the same quarter of 2022\/2023.<\/p>\n

Uganda\u2019s food production has recently been low, to the point where local markets have increasingly stocked and sold food staples from its neighbours in Kenya and Tanzania.<\/p>\n

\u201cThe biggest consequence is that the local farmers are losing income. Traders are now importing this food because it\u2019s cheaper compared to the stock in the local market and this works for them because business people look for profit,\u201d Ms Guloba noted.<\/p>\n

She added that there is also a possible creation of scarcity in the country in the food business because businesses have of late realised lower returns on investment and are trying to bridge that gap.<\/p>\n

\u201cConsumers are eventually affected by what they consume from food and utilities, which lowers their standards of living,\u201d she said.<\/p>\n

Belt-tightening<\/b><\/p>\n

Uganda\u2019s economists are concerned that the crisis has been ongoing for months and is now requiring consumers to adapt as the government cannot respond immediately. This is because issues such as unstable food production necessitate huge infrastructure investments, which are gradually rolled out to different dry areas.<\/p>\n

\u201cThe high cost of living is expected to stabilise in months but the population needs to cushion its spending because controlling this situation takes some time to be realised,\u201d Mr Muhumuza advised, adding that the situation \u201cwill squeeze […] budgets in the meantime.\u201d<\/p>\n

Ubos data shows that the most affected consumers in September price changes were those of mangoes, Irish and sweet potatoes, cooking bananas, and vegetables.<\/p>\n

The prices for detergent powder, milk, and shoe polish increased as well.<\/p>\n

Traders say the opening of schools has increased demand for food items such as maize, rice, and beans, despite the country\u2019s low production and government restrictions on agro-importation.<\/p>\n

\u201cUganda needs to boost its low food production. Kenya and South Sudan want our maize and yet our production is seasonal and has now become unpredictable. We need to mechanise the whole food production chain,\u201d Mr Thadeus Musoke Nagenda, the chairman of Kampala City Traders Association (Kacita), said.<\/p>\n

Uganda has focused on growing grain, particularly maize, for export receipts, lowering the growth of vegetables and fresh food, and increasing its appetite for importing staples from its neighbours, which puts a premium that arises from transportation costs.<\/p>\n

Energy prices<\/b><\/p>\n

The rate at which transportation costs increased by 0.6 percent between August and September as a result of the sharp increases in the cost of gasoline, diesel, and kerosene only served to exacerbate the situation.<\/p>\n

Ubos data indicates that the increase in monthly Energy, Fuel, and Utility (EFU) inflation was primarily caused by a spike in the price of liquid fuel, which rose by 5.2 percent during the time period under consideration.<\/p>\n

In particular, the cost of diesel and gasoline rose by 2.8 and 8.4 percent, respectively.<\/p>\n

\u201cThe energy prices have increased in the two or three consecutive quarters and that should be a concern for the authorities because they need to find a way to control it. It partially comes from the increased global oil prices and it spills over to our food prices through logistic costs,\u201d Mr Muhumuza said.<\/p>\n

Uganda\u2019s Energy ministry says it has little control over these rising pump prices, but it is working with Kenya and Tanzania to prevent any potential fuel shortages.<\/p>\n

\u201cThe Organisation of the Petroleum Exporting Countries (Opec) has decided to reduce oil production to manage prices on its end and yet demand is surging globally due to the winter seasons, as well as China\u2019s demand for fuel to revamp its economy,\u201d Ms Irene Bateebe, the permanent secretary in the Ministry of Energy and Mineral Development, said.<\/p>\n

\u201cUganda is a net [fuel] importer and, because of that, we access these global shocks. However, internally, [the] government is making sure there is continued fuel supply by easing fuel transportation with our neighbours in Kenya and Tanzania so as to ensure fuel reaches on time. That\u2019s why we do not have a shortfall; it\u2019s only high fuel prices,\u201d she added.<\/p>\n

In the medium term, Uganda anticipates that the liquid fuel crisis will abate. Data from the Energy ministry shows the nation imports 6.5 million litres of fuel on average every day.<\/p>\n

Construction inflation<\/b><\/p>\n

Uganda Bureau of Statistics (Ubos) also revealed last Friday that construction inflation was registered at 1.8 percent in the year ending August 2023, compared to 2.0 percent registered in the year ending July 2023. This was mainly attributed to annual construction sector inflation of inputs of specialised construction activities like electrical. Plumbing and finishing a house was registered at 0.7 percent compared to 1.1 percent in July 2022.<\/p>\n

Ms Irene Musiitwa, a senior statistician (macro-economics) at Ubos, said the inflation for specialised construction activities like demolition and site preparation was registered at minus 7.7 percent in the year ending August 2023, compared to minus 5.7 percent in July.<\/p>\n

\u201cIn addition, the construction sector inflation of inputs for electrical, plumbing and other construction installation activities was registered at 4.1 percent in the year ending August compared to 4.8 percent in July,\u201d she said.<\/p>\n

She said annual construction sector inflation of inputs into civil engineering works was registered at 1.2 percent in August compared to 1.4 percent in July. This was mainly attributed to inflation of inputs for construction of roads and railways that was registered at 0.8 percent in August compared to 1.0 percent in the previous month.<\/p>\n

For More News And Analysis About Uganda<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Uganda. Ugandans are frustrated about the rising cost of living, which has gotten worse in recent months as food and fuel prices have remained high in an economy where returns on investment have stagnated. The cost of living increased spontaneously by 0.7 percent in September compared to the 0.6 percent reported in August, […]<\/p>\n","protected":false},"author":84,"featured_media":56401,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5],"tags":[233,240,234],"class_list":["post-56403","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","tag-africa-press","tag-africa-press-uganda","tag-uganda"],"yoast_head":"\nNo end in sight for cost of living crisis - Uganda<\/title>\n<meta name=\"description\" content=\"Ugandans are frustrated about the rising cost of living, which has gotten worse in recent months as food and fuel prices ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/uganda\/all-news\/no-end-in-sight-for-cost-of-living-crisis\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"No end in sight for cost of living crisis\" \/>\n<meta property=\"og:description\" content=\"Ugandans are frustrated about the rising cost of living, which has gotten worse in recent months as food and fuel prices ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/uganda\/all-news\/no-end-in-sight-for-cost-of-living-crisis\" \/>\n<meta property=\"og:site_name\" content=\"Uganda\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2023-10-01T07:04:24+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-10-01T08:24:20+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/uganda\/sites\/34\/2023\/10\/sm_1696132363.685543.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1556\" \/>\n\t<meta property=\"og:image:height\" content=\"1013\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/no-end-in-sight-for-cost-of-living-crisis#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/no-end-in-sight-for-cost-of-living-crisis\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/uganda\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"No end in sight for cost of living crisis\",\"datePublished\":\"2023-10-01T07:04:24+00:00\",\"dateModified\":\"2023-10-01T08:24:20+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/no-end-in-sight-for-cost-of-living-crisis\"},\"wordCount\":1285,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/no-end-in-sight-for-cost-of-living-crisis#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/uganda\/sites\/34\/2023\/10\/sm_1696132363.685543.jpg\",\"keywords\":[\"Africa Press\",\"Africa Press-Uganda\",\"uganda\"],\"articleSection\":[\"all news\",\"economy\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/uganda\/all-news\/no-end-in-sight-for-cost-of-living-crisis#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/no-end-in-sight-for-cost-of-living-crisis\",\"url\":\"https:\/\/www.africa-press.net\/uganda\/all-news\/no-end-in-sight-for-cost-of-living-crisis\",\"name\":\"No end in sight for cost of living crisis - 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