Kampala — Prices for manufactured goods and construction materials have in the last four months risen by 22% and 15% respectively.

A report released by the Uganda Bureau of Statistics yesterday also noted a general rise in producer prices, known as factory gate prices.

Notable increases were in metal products, with a 39.6% rise, soap and chemicals with 32%, processed food with 23% and bricks and cement with 18%.

"This was mainly due to increased cost of raw materials coupled with increased transport costs," said principled statistician Peter Opio.

"The increases could also be related to the global financial crisis."

The price rises will, however, not necessarily translate into more profit for manufacturers due to the corresponding price increases of inputs or raw materials.

However, consumers will pay more for goods. This has been happening since July, pushing up the cost of living.

For instance, petrol prices shot up from sh2,500 to sh2,850 per litre in about a week. At the same time, diesel rose from sh2,380 to sh2,600 a litre while kerosene has increased from sh2,250 to sh2,350.

A bag of cement now costs sh25,000 from sh16,000 in July. Soap prices shot up from sh1,200 in July to sh1,600 a bar and a 20-litre jerrycan of cooking oil now costs sh90,000 up from sh65,000 in July.

However, producer prices for sugar remained stable.

Increased trade with South Sudan, Rwanda and Burundi are the main cause of the price rises, the bureau said.

It also cited the high prices of imported fuel, the Kenya election crisis and the added cost of using the alternative Dar es Salaam route. In the construction sector, prices of materials, wage and equipment hire rates rose by 15%, compared to a 3% increase in the same period last year.

This means that anyone planning to build will spend more because he or she has to pay more for materials, said Opio.

The report also cited a 3% increase in the cost of civil works, meaning that the Government must inject more money to complete ongoing road repairs.

Likewise, a contractor will lose a big amount of money unless the contract is renegotiated.

There was also a sharp increase in the price of bitumen, diesel and labour, all major materials in road works.

Diesel increased by 32% and bitumen by 22%. The price of diesel has been unstable, moving between sh2,300 and sh2,800 in July.

The price of timber rose by 5%, bricks and tiles by 24%, steel bars by 54% and roofing sheets by 39%.

Paint increased by 13% and water tanks by 7%.

Meanwhile, prices for manufacturing goods rose by 22% in September 2008 compared to September 2007.

This was slightly lower than the growth of 25% in August 2008.

Prices for manufactured goods produced for local consumption and for export continued to rise, though by a small margin.

Producer prices for exports rose by about 3%. In particular, tea prices rose by about 15% as a result of increased demand at the Mombasa Auction Market.

This was due to the low supply of Kenya and Rwanda tea.