Rise in consumer prices moderates in May

The pace of the rise in Uganda’s consumer prices moderated in May, reflecting a year on year decline in the prices of food crops and related items.

The consumer price index rose 2.8% year on year in the month, the slowest increase in seven months, down from 3.2% in April, the Uganda Bureau of Statistics said on Friday.

Prices of food crops and related items fell 4.4% from a year ago in May compared to a decline of 2% in April, driven by a decline in fruits inflation, particularly banana prices, which reduced further on an annual basis, and vegetables inflation.

Core consumer prices increased by 3.2% year on year, compared to growth of 3.4% in April. Ubos attributed the moderated increase to a 12-month decline in the prices of other goods, especially maize flour, and sugar, which fell 4.3% down from 5% in the 12-month period to April. Services inflation, on the other hand, increased by 1.5% in the year to May compared to 1% the previous month

An increase in the 12-month prices of firewood and charcoal — classified as solid fuels — was behind the rise in inflation for energy, fuels, and utilities to 8.6%, up from 8.3% in April.