3 December 2012

Uganda: Inflation Up Ahead of Christmas

Annual headline inflation has risen to 4.9% at the end of November, slightly eating into the real value of money following increases in the prices of food crops, electricity, fuel and utilities towards the December holiday season.

The Uganda Bureau of Statistics (UBOS) indicated that despite the rapid decline in inflation to 4.5% in October, the general price level has been growing and prices are much higher than at the start of the year.

"During the month, a substantial increase in prices was recorded for matooke, Irish potatoes and pineapples. Overall, the monthly composite food group index rose by 0.2%," said Chris Mukiza, the UBOS director for macroeconomic statistics.

"The Christmas season usually comes with higher prices, but we are yet to see what happens," he added.

Mukiza noted that price increases were recorded for clothing, petrol, diesel, kerosene, firewood and transport fares in some centres.

Stephen Kaboyo, the Alpha Capital Partners boss, noted that the markets are keenly awaiting the benchmark Central Bank Rate decision, expected early this week, for possible signals to loan rates and shilling movements.

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