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Egg, Milk Prices Go Down

04 November 2013

UGANDA - Year-on-year headline inflation is down to 8.1 per cent at the end of October with lower prices for vegetable oils, milk, eggs and vegetables. This has increased the purchasing power of money.

Food prices are the single largest component of inflation.

According to New Vision, annual headline inflation was revised to 8.4 per cent at the end of September after education data was analysed by the Uganda Bureau of Statistics (UBOS).

Annual core inflation which excludes prices of volatile items like food and water also dropped to 7.2 per cent from 7.4 per cent.

“The decline in food inflation was driven by a reduction in prices of fresh vegetables, fruits, dried beans and milk in most centres attributed to increased food supplies on the market,” Chris Mukiza, the UBOS director for macro-economic statistics told journalists in Kampala.

Annual food inflation decreased to 10.9 per cent in October from 11.7 per cent. Non-food inflation is also down to 6.8 per cent from 7.1 per cent boosting the disinflation momentum.

Despite the general slowdown in the pace of new prices, there were higher prices for staple food items, telephone tariffs, rent, clothing, petrol, diesel, and chicken around the country.

Mbarara recorded the highest inflation at 10.2 per cent Masaka at 10 per cent, and Kampala at 9.7 per cent. Arua had the slowest price movements at 0.6 per cent mainly due to decreased tobacco leaf, charcoal, and food prices.

TheCattleSite News Desk

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