Uganda Doing Better Than Kenya Despite Low Fuel Cost; This is how

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.

Uganda Doing Better Than Kenya Despite Low Fuel Cost; This is how
President William Ruto left and his Ugandan counterpart Ypweri Museveni at a past event
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Lawrence Baraza

Lawrence Baraza is a dynamic journalist currently overseeing content at Metropol TV Digital. With a keen focus on business news and analytics, Lawrence guides the platform in delivering insightful, data-driven content that empowers its audience to make informed decisions. Lawrence’s commitment to quality and his ability to anticipate market trends make him a key figure in the digital media landscape. His work continues to shape the way business news is consumed, making a significant impact in the field.

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