JULY UTILITY PRICE HEADACHE! Water, Power & Fuel Bills Spike As Food Prices Fall

By Evans Najuna

KAMPALA – Ugandans faced another cost-of-living squeeze in July after fresh figures from the Uganda Bureau of Statistics (UBOS) revealed sharp increases in the prices of essential utilities, piling more pressure on already stretched household budgets.

The latest Consumer Price Index (CPI), released on Friday, July 31, 2026, shows that monthly headline inflation rose by 0.2 percent, driven mainly by higher water charges, electricity tariffs and fuel prices.

Water charges delivered the biggest shock, soaring by a staggering 17.5 percent in just one month. Electricity tariffs also increased by 2.2 percent, while motorists paid more at the pump as petrol prices rose by 1.9 percent, diesel by 1.3 percent, and cooking gas by 1.5 percent.

The biggest increase was recorded under the Housing, Water, Electricity, Gas and Other Fuels category, which rose by 2.0 percent, making it the fastest-growing household expenditure in July.

Transport costs also increased by 0.5 percent, while Ugandans spent more on furnishings, household equipment, personal care products, restaurants, accommodation services, health care and clothing.

Despite the spike in utility costs, there was some welcome relief for consumers as food prices continued to fall.

UBOS reported that inflation for food crops and related items declined by 1.5 percent, largely due to lower prices for matooke, tomatoes, pineapples, Irish potatoes and onions.

Matooke prices dropped by 14.8 percent, pineapples plunged by 24.0 percent, tomatoes fell by 7.2 percent, Irish potatoes declined by 7.1 percent, while onions became 3.3 percent cheaper.

Economists say the increase in utility prices is partly linked to seasonal factors. Between mid-May to mid-August, many parts of Uganda experience a prolonged dry spell that lowers water levels in rivers and reservoirs. The reduced water availability increases demand while limiting supply, resulting in higher water charges.

The same dry conditions also affect hydroelectric power generation, as reduced water levels lower generation capacity. This can tighten electricity supply at a time when demand remains high, contributing to upward pressure on electricity costs.

Overall, the mixed price movements left monthly headline inflation at 0.2 percent for July, meaning Ugandans paid more for utilities and transport but benefited from cheaper prices for several staple food items.

UBOS publishes the Consumer Price Index at the end of every month to monitor changes in the prices of goods and services consumed by households across the country.