Core consumer prices, which exclude volatile food and energy costs, rose 3.4 per cent in October from a year earlier—the slowest pace since April 2024. The headline inflation rate also eased to 3.4 per cent, its lowest in seven months, according to the October consumer price index published by the Uganda Bureau of Statistics.
Although core inflation has generally cooled this year, accelerating only in January, April and May, it stalled above 4 per cent for five consecutive months between May and September. The Bank of Uganda closely monitors core inflation as an indicator of future price trends, and has kept its policy rate unchanged this year as the gauge has remained comfortably below the 5 per cent target. The bank’s monetary policy committee is due to meet on 10 November.
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Ubos said the easing of the headline rate, from 4 per cent in September, reflected a slowdown in the prices of core goods and of food crops. Core goods inflation rose 3 per cent, down from 2.6 per cent the previous month, whilst annual inflation for food crops and related items fell to 6.1 per cent from 7.4 per cent in September.
Energy prices rose 0.1 per cent in the year to October, reversing a 0.1 per cent decline in September.
On a month-on-month basis, CPI was unchanged in October, compared with a 0.5 per cent gain in September. Monthly core inflation was also flat, down from an increase of 0.1 per cent the previous month, largely reflecting slower price growth for other goods.
