Uganda’s annual inflation eases to 3.8% in July

_____________

Uganda’s annual inflation eased slightly to 3.8% in the 12 months to July 2025 from 3.9% in June, driven mainly by lower food prices, according to the Uganda Bureau of Statistics (UBOS).

UBOS said annual food crops and related items inflation slowed to 3.2% in July from 4.7% the previous month. Tomato prices dropped by 8.1% after rising 0.9% in June, while dry beans inflation fell to 8.3% from 12.1%.

Prices for fresh loose milk rose 3.6% compared with 8.9% in June, matoke inflation eased to 35.3% from 37.7%, and Irish potato prices dropped by 4.6% after a 0.6% fall in June.

Annual core inflation, which excludes food crops, fuel and utilities, stood at 4.1% in July, down slightly from 4.2% in June. Samuel Echoku, head of department, macroeconomic statistics at UBOS, said this was mainly because of lower services inflation, which eased to 4.6% from 4.7% a month earlier.

Passenger transport services recorded a 3.5% annual fall compared with a 2.7% decline in June, while accommodation services inflation slipped to 3.5% from 3.6%.

Other goods inflation was unchanged at 3.7% in July. Sugar prices surged 9.6% compared with a 3.9% rise in June, while mukene (small fish) prices fell 12.8% after a 15.7% drop the previous month. Maize flour prices rose 13.8% in July, up from 12.6% in June.