Inflation slows to 4.1% in October


Annual headline inflation slowed to 4.1% for the year ended October 2016 from 4.2% in September, according to data from the Uganda Bureau of Statistics. Core inflation, which is targeted by the Central Bank, however rose to 5.1% year-on-year from 4.1% (revised) in September.

The downward pressures on prices was due to a year-on-year decline in food crops inflation to 1.7% from the 5.0% recorded last month. This fall in the prices of food crops was attributed to a decline in vegetable inflation to 6.0% versus 11.1% in September.

On the other hand, core inflation rose due to an increase in services inflation to 6.5% compared to the 3.5% registered in the year ended September 2016. Items under services that rose include education (by 19.7%, versus 14.6% last month), restaurants and hotels (6.2%, versus 5.3% in September), and miscellaneous goods and services (6.1%, versus 6.5% last month).

The Monthly headline inflation increased by 0.9% for the month of October 2016, the same rate recorded in September 2016.