The Independent Uganda: You get the Truth we Pay the Price
Kampala, Uganda | THE INDEPENDENT | Uganda’s central bank maintained the Central Bank Rate at 10% saying it is still effective to control the rise in inflation, bring stability to the lending and exchange rate, and drive economic growth.
Uganda Bureau of Statistics reported at the end of last month that annual inflation, as measured by the consumer price index for Uganda for the 12 months to January 2023, was 10.4 %compared to 10.2% registered in the year ended December 2022.
The statistics body said, the increase was due to the upward trend curve for core inflation – a target for the Bank of Uganda’s Monetary Policy – that was registered at 9.0% in the year ending January 2023 compared to 8.4% registered in the year ending December 2022.
The annual core inflation was mainly attributed to the increase in the annual services inflation of 4.9% in the year ending January 2023 compared to the 3.6% registered in the year ending December 2022.
Annual inflation of passenger transport by road which increased to 3.4 % in January 2023 compared to minus 12.6% in December 2022 was the main driver.
The annual food crops and related items inflation was registered at 27.6% in the year ending January 2023 compared to 29.4% registered in the year ended December 2022. This was mainly due to matooke, oranges, Irish potatoes and cabbage inflation.
The annual energy fuel and utilities (EFU) inflation was registered at 7.6% in the year ending January 2023 compared to 10.6% registered in the year ending December 2022. This was mainly due to petrol and diesel inflation movements.
Overall, the balance of risks to the inflation outlook is tilted downwards. The latest quarterly GDP data from the Uganda Bureau of Statistics revealed stronger than expected stronger growth in the three quarters of 2022, averaging 6%.
BoU Deputy Governor, Dr Michael Atingi-Ego said, while the economy is faced with headwinds arising from the global and domestic scenes, the current CBR would contain domestic demand pressures, while accommodating and supporting economic recovery.
