Traders and customers feel the pinch as inflation hits

Kampala, Uganda | THE INDEPENDENT | Traders in Kampala are feeling the pinch of rising commodity prices. They reveal that their sales have been so low in the last two months, and indication the customers are also struggling.

Some of the traders who spoke to Uganda Radio Network – URN indicate that some of the commodities that are purchased fastest have more less turned into ‘luxury’ to consumers that they are not buying in large amounts now. From soap to cooking oil to fuel, prices of most basic items have hit an all-time high affecting low income earners.

Retail price of a kilogram of soap was about four thousand five hundred shillings in January but by the end of March it was about nine thousand shilling. The price of cooking oil has also increased during the same period.

According to Uganda Bureau of Statistics (UBOS), annual inflation stood at 3.7% at end of March 2022 from 3.2% in February.

UBOS says the increase is the highest since September of 2018. While the increase in soap and cooking oil prices have been linked to external factor like shortage in raw materials mainly imported from Malaysia, traders in Kampala indicate that prices of other commodities have risen too.

Rose Nakanjako, who runs a wholesaler store in Kisenyi, said while she has stocked commodities going per her previous sales, buyers are nowhere to be seen. “For example, I used to sell more than 20 sacks of rice in a week, but now to make 15 is not easy,” she said.

Ritah Nakitto, a dealer in lady’s clothes told URN that she suspects that people don’t have money to purchase the goods.

Caroline Zawedde, a boutique retailer also said customer scarcity has been the worst in the past two months.

While UBOS said there was a decrease in some commodities like the area of Information and communication, Vincent Kawooya, a dealer in mobile phones told URN that potential customers only go there for window shopping.

He suspects potential buyers from the districts outside Kampala have been limited by the high transportation fares.

Stella Naava, a jewelry dealer says she is about to close shop because she cannot raise enough money to cater for other costs including rent. She said that the sales are low and this shows how consumers are suffering.

Hassan Mugisa, a Boda Boda rider said he has resorted to survival tricks like not buying new clothes to go through what he described as difficult time.

Harrison Katende, also a Boda Boda raider said he is not buying some commodities because he has no money.

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URN