Ugandan inflation falls in Nov on slower rise in food costs - CNBC Africa

Ugandan inflation falls in Nov on slower rise in food costs

East Africa

by admin 0

The annual food inflation rate for the year ending November decreased to 8.1 per cent. PHOTO: Getty Images

Uganda's headline inflation rate fell sharply in the year to November as a rise in food prices slowed, the Uganda Bureau of Statistics said on Friday.

Consumer prices fell 0.7 per cent during November, helping to hold the year-on-year inflation rate to 6.8 percent, down from 8.1 per cent a month earlier. Core inflation, which excludes both food and fuel costs, fell to 7.0 per cent from 7.2 per cent in October.

"The annual food inflation rate for the year ending November decreased to 8.1 per cent compared to the 10.9 per cent recorded during the year ended October," the statistics office said in a statement.

"The decline in food inflation was driven by a reduction in prices of matooke (plantains), Irish potatoes, cassava, sweet bananas, oranges, tangerines, cabbages, tomatoes.... this is attributed to increased supplies of these items on the market."

Food prices eased 2.3 per cent during the month. Food carries a 27.2 per cent weighting in the consumer price index.

Uganda's central bank said last month that core inflation was expected to stay at 6.5-7.5 per cent in the next 12 months before falling towards the bank's medium-term target of five per cent in 2015.

 

Comments