Inflation Rises In Busy December Month

December is known to be a month when majority of people across the world spend big due to the festive season.

The expenditure of Ugandans in December caused the inflation rate to rise to 5.5% from 4.9% in November, according to a press release issued by the Uganda Bureau Of Statistics.

The capital Kampala recorded the highest headline inflation followed by Mbarara and Masaka due to the hike in prices for utilities like electricity, water and transport.

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Below is the full Press release

Annual Inflation

The Annual Headline Inflation rate for the year ending December 2012 rose to 5.5% from 4.9% registered for the year ended November 2012. The Annual Core (Underlying) Inflation rate, which excludes food crops, fuel, electricity and metered water rose to 4.6% for the year ending December 2012 from the 3.9% registered for the year ended November 2012.

Similarly, Energy, Fuel and Utilities (EFU) Annual Inflation rose to 14.0% for the year ending December 2012 compared to 13.8% registered for the year ended November 2012.

However, Food Crops Annual Inflation rate decreased to 7.3% for the year ending December 2012 compared to the 7.5% for the year ended November 2012 (Table 1). The average annual Inflation rate for the 2012 calendar year is 14.0% compared to 18.7% that was recorded for the calendar year 2011.

Annual Inflation Rates by Centre

Kampala High Income registered the highest Annual Headline Inflation rate of 8.1% from 8.0% in November 2012. This was driven by high price levels for alcoholic beverages, rent, electricity, metred water, transport fares and education. Mbarara recorded the second highest annual Headline Inflation rate of 7.5%, up from 4.9% in November 2012. The main inflation drivers were high price levels for alcoholic beverages, rent, firewood, water, electricity and education. Masaka recorded the third highest Annual Inflation rate of 6.4% from 7.1% in November 2012. This was driven by high price levels for household & personal goods, rent, electricity, water, education and medical services.

Monthly Indices

The Monthly Headline Index for the month of December 2012 rose by 0.3% compared to an increase of 0.6% recorded in November 2012. The Core Index increased by 1.3% in December 2012 compared to a 0.4% rise recorded in November 2012. Similarly, the Monthly EFU Index rose by 0.2% in December 2012 from a 0.8% increase recorded in November 2012. However, the Monthly Food Crops index registered a minus 4.5% in December 2012 compared to 1.5% increase in November 2012.

Prices of chicken and egg plants went up in most centres. However, decrease in prices was recorded for matooke, Irish potatoes, pineapples, mangoes, sweet bananas, and most fresh vegetables. This was mainly attributed to increased supplies to the market. Overall, the monthly composite food group index registered a minus 2.0%.

In the non-food category, prices index rose by 1.5% driven by alcoholic beverages, clothing, petrol, diesel kerosene, firewood, transport fares and meals in restaurants in some centres.

Food and Non-Food Inflation Rates

The Annual Food Inflation rate remained stable for the year ending December 2012 from the minus 2.0% registered in November 2012. The non-food inflation registered 8.3% for the year ending December 2012 compared to 8.6% recorded in November 2012.

The Annual Inflation rate for Other Goods dropped to minus 0.8% in December 2012 compared to minus 2.2% recorded in November 2012. For Services, the Annual Inflation rate recorded was 12.8% in December 2012 compared to 13.1% registered in November 2012, according to the press release from Uganda Bureau of Statistics (UBoS).