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Annual inflation rises to 3.4%

Uganda’s annual headline inflation – the measure of the change in the price of goods and services in a year - rose to 3.4 per cent during the year ending June 30, 2019, well below the official government target of five per cent. The number was nonetheless higher than 3.3 per cent recorded in the year ending May 31, 2019. 

According to data from the Uganda Bureau of Statistics, the higher prices for services drove inflation up. Vincent Nsubuga, the acting director of macroeconomic statistics at the Uganda Bureau of Statistics (UBOS), said the driver for the increase in annual core inflation was due to the increase in the prices of services such as education, health, hair dressing and entertainment, which rose to 4.7 per cent in June 30, 2019 compared to four per cent recorded during the period under review.

“In particular, annual inflation for education increased to 6.8 per cent for the year ending June 2019 compared to the 3.6 per cent recorded in May 31, 2019. In addition, the increase in education inflation was due to pre-primary and primary education inflation which rose 6.7 per cent year on year in June compared to the three per cent recorded the previous month. Secondary education inflation also increased by 7.4 per cent in the year to June, up from 3.8 per cent in May,” Nsubuga said.


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