31 July 2012

Uganda's Inflation Reduces to 14.3 Percent

Uganda's headline inflation for the year ending July 2012 has reduced from 18.0% in June to 14.3% in July, the Uganda Bureau of Statistics announced on July 31.

This is the fifth time the East Africa's third biggest economy inflation is abating after it touched 30.5% in October last year. The July reduction is attributed to the reduction in food prices as well as a sharp reduction in core inflation.

The Statistics body said food crops registered an annual inflation rate of 7.5% for the year ending July 2012 compared to 11.3% registered in June, in the same year. It said the annual core inflation rate, which excludes food crops, fuel, electricity and metered water declined to 15.4% from 19.6% (revised) in July and June respectively.

However, the annual energy, fuel and utilities inflation rate rose to 16.7% for the year ending July 2012 compared to 12.9% for the year ended June 2012.

The central bank reduced the central bank rate to 19% at the beginning of July this year from 20% in June. It (central bank) will announce the CBR for August on Thursday this week.

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