A decline in food prices by 10.6 helped to lower Uganda's inflation rate in the month of October 2009.

The Consumer Price Index released by Uganda Bureau of Statistics last week shows that Uganda's annual inflation rate for the year ending October 2009 went down to 13.3 per cent from 14.6 per cent for September 2009.

High inflation rate continues to erode the health of Uganda's economy due high food prices that have persistently stayed high since the second quarter of 2008, the event which has forced Ugandans to adjust their food budgets up.

Food prices are outside the monetary policy control being administered by the central bank therefore making it hard to control the inflation rate.

Uganda Bureau of Statistics CPI figures indicated that the annual food crops inflation rate for the year ending October also decreased to 38.9 per cent from 49.5 per cent in September. The decrease in food prices were mainly attributed to increased supplies to the markets due to the current rainy conditions in most parts of the country.

The slight decline in Uganda's inflation rate was also brought about by decreases in rent charges, fuel and utilities group which dropped from 4.5 per cent to 3.9 per cent in October.

However, Uganda Bureau of Statistics clarified that increases in prices of staple foods, dried vegetables especially beans, some fruits and sugar were registered in most centers.

UBOS said inflation is projected to drop to the single digit margin with the onset of the rains.