Uganda’s inflation rate slows to 3.3% in 2024
The Annual Average Headline Inflation was influenced by price stability across key sectors and a slowdown in core inflationary pressures.
Uganda’s inflation rate dropped to 3.3% in 2024, a significant decline from 5.4% recorded the previous year, according to the Uganda Bureau of Statistics (UBOS).
The Annual Average Headline Inflation was influenced by price stability across key sectors and a slowdown in core inflationary pressures.
In the food sector, inflation remained negative at -0.7%, marking an improvement from -4.0% in November. Favourable weather conditions boosted agricultural yields, leading to increased crop production and reduced pressure on food prices. However, certain perishables like tomatoes and onions experienced significant price fluctuations.
Energy, Fuel, and Utilities (EFU) Inflation also saw a decline, standing at 1.0% in December, down from 2.2% in November, reflecting volatility in this critical sector.
Policy measures by the Bank of Uganda, aimed at managing liquidity and addressing inflationary pressures, played a key role in stabilizing prices. Despite the overall improvement, challenges persist in ensuring consistent pricing, particularly for perishable goods.
The drop in inflation is a positive indicator of economic stability as Uganda navigates challenges in key sectors.
