Uganda's inflation jumped to 21.4 percent on Wednesday morning, the highest since February 1993 and almost three points higher than a month earlier.
Francis Mashate, the acting executive director of Uganda Bureau of Statistics explains that the headline inflation rate in August climbed from a revised 18.8 percent in July, as the impact of a severely weak shilling added to inflationary pressures through imports.
He attributes the sharp increase mainly to a rise in food prices.
According to Mashate, the core rate of inflation which excludes food crops, fuel, electricity and metered water jumped to 20.0 percent from 15.6 percent in July.
He says during the month, food prices rose by 2.4% due to increases in prices of sugar, meat, chicken, fish, eggs, bread, fresh milk and pineapples in most centers.
Mashate says the increase in prices of these food items is mainly due to low supplies to the markets. He also explains that rising prices for petrol and diesel continued pushing up transport fares in most parts of the country.
He says in addition prices of some imported goods especially second hand and new clothes, some household and personal goods went up mainly due to continued depreciation of the shilling.
According to Mashate, among the notable towns in the country, Gulu has the highest inflation rate at 32.7 percent, followed by Arua town at 32.4 percent and Masaka at 26.4 percent, while Jinja is at 26.0 percent.
In February 1993, Uganda’s inflation rate hit highest point at 24.9 percent.
Last month Bank of Uganda said it would be targeting 5 percent core inflation in the medium term, making an increase in its Central Bank Rate from 14 percent likely, when the governor issues a monthly policy statement on September 6th.
Like other countries in East Africa, Uganda has suffered from a sharp rise in inflation this year, accompanied by a weakening of its currency against the dollar.
