Towards the end of the 2011, Uganda’s economy suffered several hits. Prices of essential commodities and food sky-rocketed, as inflation almost hit 30 percent.
In the first month of 2012, the inflation levels started going down, while prices of some foods also went down.
In ideal circumstances, inflation means that there is too much money in circulation, chasing after too few goods. Street talk has also blamed the election period of early 2011 to have caused the inflationary situation.
In January 2011, traders in Kampala, went on a 3-day strike, protesting high interest rates, as the Bank of Uganda raised the Central Bank Rate, as a control measure against the inflation
So, is it really true that there is too much in Uganda’s economy? We bring you an analysis on what is causing the inflation situation in Uganda. We also look into whether it is possible for our economy to fully recover.
As the inflation rate started going down at the beginning of February 2012, the Central Bank seemed hopeful that there is hope for the economy to recover.
Tune in to this edition, to understand where our economy stands, and also get the experts’ advice on how to deal with situation and survive the hard financial times, at the individual level.