The Independent Uganda: You get the Truth we Pay the Price
Kampala, Uganda | THE INDEPENDENT | The effects of harsh weather conditions are not only causing discomfort for Ugandans but are also impacting the economy, with rising food prices contributing to inflationary pressures. The latest Consumer Price Index (CPI) report from the Uganda Bureau of Statistics (UBOS) shows that annual inflation for the year ending February 2025 stood at 3.7 percent, slightly up from 3.6 percent in January 2025.
While the overall inflation rate remains relatively stable, the report highlights that fresh food prices have been a major driver of this increase. The Annual Food Crops and Related Items Inflation jumped significantly from 0.2 percent in January to 4.3 percent in February. This rise is largely attributed to the price increases of tomatoes, dry beans, cooking bananas (matoke), and green peppers.
Among the food items experiencing the most significant price hikes, green peppers saw the sharpest rise, with prices increasing by 17.2 percent in February 2025, in stark contrast to the 5.4 percent drop in January. Samuel Echoku, the UBOS head of economic statistics, noted that the price increase is linked to several factors, most notably the unfavorable weather conditions. “The recent dry spell has affected crop yields, reducing the availability of fresh produce in markets across the country, and consequently driving up prices,” he explained.
Echoku also pointed out that the price increases for green peppers are part of a broader trend within the food market. For instance, tomato prices surged by 12.4 percent in February, compared to a 4.7 percent rise in January. Dry beans saw a price increase of 2.8 percent after only rising by 0.4 percent the previous month. Similarly, fresh leaf vegetables rose by 11.9 percent in February, compared to an 8.9 percent increase in January.
In contrast, some staple foods, such as fresh cassava, experienced relatively smaller increases, with prices rising by 4.1 percent in February, following a 2.5 percent increase in January. While foods like maize flour and rice have remained stable or even decreased in price, the overall impact on household budgets remains significant. The report also notes that core inflation, which excludes food and energy, stood at 3.9 percent in February, slightly down from 4.2 percent in January.
This suggests that food prices are playing a major role in the overall inflation rate. Meanwhile, the Annual Services Inflation, which includes costs for education, transport, and lodging, dropped from 6.3 percent in January to 5.4 percent in February. This decline was largely driven by a decrease in education-related costs, which fell from a 10.3 percent increase in January to 6.6 percent in February.
Meanwhile, the Annual Energy, Fuel, and Utilities (EFU) Inflation decreased slightly to 0.2 percent in February, down from 0.3 percent in January. This was primarily due to a decline in solid fuel prices, such as firewood and charcoal, despite slight increases in electricity and fuel prices. As food prices continue to climb, many Ugandan households are adjusting their spending habits to cope with the higher costs. The surge in green pepper prices, in particular, underscores the volatility of food inflation and the challenges faced by both farmers and consumers.
Some consumers are turning to cheaper alternatives, while businesses—especially those in the hospitality industry—are struggling to manage increased costs without significantly raising their prices. Echoku predicts that food prices may remain high in the coming months due to persistent climate conditions and ongoing supply chain issues. However, if agricultural output improves and transportation costs stabilize, there could be some relief for consumers.
To address these challenges, the government is expected to implement policies aimed at stabilizing food prices. One potential measure could involve providing support to farmers through subsidies and improved irrigation systems to mitigate the effects of weather-related challenges. For now, consumers will need to prepare for continued fluctuations in food prices, particularly for fresh vegetables like green peppers, which are vulnerable to supply chain disruptions and seasonal changes. As Uganda navigates these economic challenges, rising food prices are reshaping household spending, market dynamics, and broader inflation trends across the country.
