Life in Uganda has become even more affordable, but you wouldn’t notice until one visits President Museveni-led country.
In February 2024, the Bank of Uganda (BoU) maintained its lending rate at 9.5% to tame inflation.
The move has bore fruits, with a reflection in March which saw inflation slow down to 3.3%,
Inflation in February was at 3.4%, remaining below BoU’s target of less than 5%.
What Drove Down Uganda’s Inflation?
Inflation for other goods was lower, reaching 1.6% for the year ending March 2024, down from 1.8% in February 2024.
Stable prices for most goods drove this slowdown, save for dried kapenta (silver cyprinid).
Popular local gin (waragi), and goat meat also saw price increases in March 2024 compared to February 2024.
Uganda’s annual energy and fuel inflation slowed to 7.6% in March 2024 compared to 8.0% in February 2024.
Also Read: Shilling Gain Helps Ease Kenya’s Inflation to 2-year Low
Uganda has seen decreased price increases for charcoal, firewood, and petrol.
Petrol in Kampala is currently retailing at Ush.5, 250 (Ksh.178.16) compared to Nairobi at Ksh.199 per litre.
How Kenya Fared Compared to Uganda
In comparison, Kenya’s inflation in the corresponding period fell to 5.7%, a two-year low.
Inflation dropped due to price drops of everyday items such as fuel, and maize flour.
In addition, prices of 200 kWh and 50 kWh of electricity dropped by 0.3 percent and 0.4 percent, respectively, during the period.
The average price of maize grains declined by 4.9% from Ksh.68.67 per kilo in February to Ksh.65.31 per kilo in March.
The price of a 2 kg packet of shifted maize flour declined by 5.8% from Ksh.154.54 in February to Ksh.145.57 in March.
The highest price increase in the food basket was onions whose price increased from Ksh.150.63 per kilo in February to Ksh.167.28 per kilo in March.
Other food items that have recorded price increases include Mangoes, Potatoes, Oranges, Cabbages, Tomatoes, and Beef.
