30 November 2012

Uganda: Inflation Marginally Increases to 4.9 Percent

Uganda's year-on-year inflation rate rose marginally for the first time in eight months to 4.9% in November, from 4.5% in October, the Uganda Bureau of Statistics (Ubos) reported on Nov. 30 in Kampala, the capital city.

But core inflation, which is the main target for the central bank fell to 3.8% from 4.0%, a month earlier, well below the bank's target of 5%.

Food crops annual inflation rate increased to 7.5% for the year ending Nov. 2012 compared to the 4.4% for the year ended October, the same year. Similarly, the energy, fuel and utilities annual inflation rate rose to 13.8% compared to 12.8% registered for the year ending Nov. 2012 and Oct. 2012 respectively.

The central bank will announce the central bank rate for December on Tuesday next week. The bank hiked the CBR to 23% in October last year to battle inflation which had surged to over 30%. As a result, commercial banks increased interest rates on loans which resulted into a traders' strike.

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