Kampala — The prolonged dry spell being experienced in most parts of the country have caused an increase in Uganda's annual headline inflation to 5.9 per cent for the year ending January 2017, from 5.7 per cent registered in the previous year that ended December 31, 2016.
Uganda Bureau of Statistics (Ubos), on Monday, said the dry spell has affected food crop production leading to a rise in prices of some food items as a result of reduced supply from the farms to the market.
Increasing prices of some food items means that people are faced with the problem of adjusting their budget in order to be able to accesses the food items they need.
Releasing the Consumer Price Index (CPI) at Statistics House in Kampala, director of macroeconomic statistics UBOS, Dr Chris N. Mukiza, said the increase in annual headline inflation was due to increase in annual food crops inflation that rose to 14.5 per cent for the year ending January 2017 from the 10.8 per cent recorded for the year ended December 2016.
"The rise in in annual food crops inflation is mainly due to the fruits inflation that increased to 30.4 per cent for the year ending January 2017 compared to 24.8 per cent registered during the previous year. In addition, vegetables inflation increased to 6.8 per cent for the year ending January 2017 compared to 2.4 per cent recorded for the year ended December 2016," he said.
The CPI is a measure that looks at the weighted average of prices of a basket of consumer goods and services, such as transportation, food, medical care education among others. Changes in the CPI are used to assess price changes associated with the cost of living.
Similarly, the annual Energy Fuels and Utilities (EFU) Inflation rose to 1.4 per cent for the year ending January 2017 compared to minus 2.8 per cent recorded to during the year ended December 2016.
The increase was mainly annual inflation for electricity that recorded 6.7 per cent for the year ending January 2017 compared to minus 6.2 per cent for the year ended December 2016.
the annual food crops inflation for the year ending January 2017