The country’s bureau of statistics has noted a drop in headline inflation from 2.1% in April to 1.9% by the end of May. Uganda Bureau of Statistics (UBOS) was able to estimate the drop after implementing a new measurement method used to calculate inflation. This new method includes items onto the consumer price index that was not there previously.
Due to the new measure of inflation calculation, the number of items that were being estimated rose from an initial number 274 to 344 which is currently being used to determine the inflation rates.
Also, the drop is many attributed to reduction on the prices of food and non-alcoholic beverages as it has been noted that these two categories’ prices dropped from -2% in April to -3.5% in May.
However, according to Ms. Kaudha Aliziki Lubega, the Uganda Bureau of Statistics director of Macroeconomics statistics, these were not the only fields that contributed to the drop of the inflation rates as other sectors contributed which include;
The gas and other fuels inflation rates dropped from their -1.5% rates in April to -1.7% rates in May while Personal care, social protection and miscellaneous goods saw a drop in inflation from 2.5% to 2.3% in the same time range.
On the other hand, she noted that their was also an increase in inflation in the transport rates which saw a rise from 19.6% in April to 20.9% in May, while annual restaurants and accommodation services also rose from 0.1% to 0.7%.
Apart from the two, insurance and financial services also recorded an increase from -2.3% in April to -0.7% in May. As for education services, the inflation rate increase to 0% from 0.6% in the same time range of April to May.
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Additionally, Ms Kaudha noted an increment in the annual core inflation during the April and May time frame from 2.9% to 3.1%. This she attributed to a rise in service inflation from April’s 6% to 6.7% in May.
The annual inflation of goods decreased from 0.3% in April to 0.1% in May, the annual non-core inflation dropped from -2% in April to -4.2% in May and the annual for crop and related items inflation also dropped from 1.6% in April to -5.7% in May.
As for the energy fuel and utilities, they increased to -2.3% in May while they stood at -2.4% in April.