Kampala. Uganda’s inflation has continued to trend upward for the second consecutive month, fuelled by rising food crop prices, that have seen annual headline inflation for the year ending April 2017, rising to 6.8 per cent compared to 6.4 per cent for the year ended March 2017.
According to Uganda Bureau of Statistics (UBS), the increase was due to the annual food crops inflation which rose to 21.6 per cent for the year ending April 2017 compared to 20.9 per cent recorded for the year ended March 2017.
The shift was blamed on prolonged drought the country experienced, which resulted into poor crop harvest.
Ubos director macroeconomic statistics Chris N Mukiza, while releasing the Consumer Price Index in Kampala last week, said: “The rise in annual food crops inflation was mainly due to the vegetables inflation that increased t0 14.0 per cent for the year ending April 2017 compared to the 11.9 per cent registered during the year ended March 2017.”
Dr Mukiza said fruits inflation registered a 35.5 per cent for the year ending April 2017, the same rate recorded for the year ended March 2017.
Similarly, annual core inflation rose to 4.9 per cent for the year ending April 2017 compared to 4.7 per cent recorded for the previous year.
The managing director of Alpha Capital, Mr Stephen Kaboyo, told Daily Monitor: “There is a general underlying trend of building cost pressures that are feeding through from the harsh weather conditions in the early part of the year. In my view, this supply shock is the main factor behind the upward trend in inflation.”
“On the positive side the Shilling stability seen in last couple of months seem to be moderating the effects; however depreciation pressures are lately showing up again considering the currency movements of this week,” he added. (NMG)
Globally, the World Bank is forecasting higher prices for industrial commodities, principally energy and metals, in 2017 and next year. (NMG)