3 December 2012

Uganda Inflation Goes Up After Rebound

Kampala — Uganda Annual headline inflation has gone up to 4.9% for the year ending November 2012 from the 4.5% recorded in October.

According to the Uganda Bureau of Statistics (UBOS) the country's food crops annual inflation also rose to 7.5% for the year ending November 2012 compared to 4.4% for the year ended October 2012.

Dr Chris Mukiza the Director of Macro Economics at UBOS attributed the inflation increment to the limited supply of both food and non food items in the market items which also led for the country's monthly Headline for the month of November 2012 to rise.

"During the month substantial increase in prices was recorded for food items like matooke, Irish potatoes, Avocado and tomatoes as of decreased supplies to the market. However there was a decline in the price of fish, oranges and maize flour," Mukiza explained

In the non food category the price of clothing , petrol, transport fares increased by 0.6% and the food crops index rate also increased by 1.5%in November 2012 compared to the 0.6% increase in October.

Rating inflation by centers in the country, Kampala high income registered the high rate of Annual headline inflation of 7.8% from 7.2% in October.

Mukiza blamed this on the high price levels of clothing's, foot wear metered water , electricity among other factors.

Mr. James Musime a food crops vendor at Nakasero market attributes the poor supply to the poor harvests registered at the end of October.

He warned that even in December, prices for food stuffs is expected to increase due to the heavy rain fall which has rendered some roads impassable.

He said when it rains heavily food distribution is most affected and some crops like tomatoes get rotten that is why the country is experiencing shortage of tomatoes along side high demand for the crop

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