Uganda's annual headline inflation has hit 5.1% as food supplies to markets dwindled at the end of July following a dry spell that affected central and western Uganda.
Prices of fresh and processed food contribute up to a third of the eventual general price level. Inflation has risen from a revised level of 3.6% at the end of June.
The Uganda Bureau of Statistics (UBOS) noted that traders around the country have pushed up prices as speculation mounts following announcement of new taxes in the new financial year.
"We cannot tell exactly how much the dry spell contributed to the increase in inflation but it has indeed contributed. The price of fresh fruits, milk, vegetables went up in July due to little supply to markets," said Samuel Kaisiromwe, a UBOS senior statistician.
Annual core inflation which excludes energy, fuel, food, and utilities increased to 6.4% from 5.8% as the charges for education, clothing and rental charges went up in most trading centers around the country.
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