Cost of housing and energy in Uganda causes July inflation to rise

by Reuters 0

Uganda’s headline inflation rose to 5.4 percent year-on-year in July from 4.9 percent the previous month, after costs of housing and energy increased, the statistics office said on Friday.

Policymakers, who have been concerned about inflationary pressures after the shilling weakened sharply against the dollar, raised the benchmark lending rate by 150 basis points earlier this month.

Core inflation, which excludes food, metered water and fuel prices, also rose to 5.4 percent from 4.9 percent in June, the Uganda Bureau of Statistics said.

On a monthly basis, the headline inflation rose by 0.4 percent from a decline of 0.9 percent in June.

Electricity, fuel and utilities inflation went up by 4.5 percent from a rise of 0.2 percent in June.

“Increase in prices was recorded for clothing, footwear, rent charges, cement, charcoal, firewood, petrol, diesel and kerosene,” the bureau said.

Food inflation fell during the month mainly due to a decline in the prices of vegetables and fruits.