Ugandan annual headline inflation speeds to 3.6% in May

By bne IntelliNews June 3, 2013

Uganda's annual headline inflation rate accelerated slightly to 3.6% in May from 3.4% in April, driven up by food prices, Daily Monitor reported, quoting data by the Uganda Bureau of Statistics. Food prices, which are the main inflation driver with a 27.2% weight in the consumer basket, fell 2.1% y/y in May following a 2.6% decline in the previous month. The annual core inflation rate, which excludes food crops, fuel, electricity and metered water, fell to 5.6% from 5.8 % in April, but remained above the central bank’s 5% medium-term target. The annual food crops inflation stood at -5.2% last month, increasing from -7.5% in April.

Uganda’s monthly headline inflation rate slowed to 0.1% in May from 1.4% in the previous month.

The average inflation for the first five months of the year stood at 3.88%, which is a relatively low level, but the Bank of Uganda has maintained a cautious monetary stance this year, holding rates at 12% in order to keep a balance between supporting growth and curbing inflationary pressures.

Related Articles

South Africa’s MTN to invest $350mn in Iranian broadband

South Africa’s MTN said it has agreed, on a non-binding and preliminary basis, to invest an initial $350mn into Iranian fixed broadband provider Iranian Net. The investment will give ... more

South Africa receives another downgrade to junk

Fitch Ratings on April 7 downgraded South Africa to junk status following the removal of Pravin Gordhan as finance minister and the enusing political crisis. Fitch's downgrade to 'BB+' ... more

S&P downgrades South Africa's credit rating to junk after cabinet reshuffle

Standard & Poor’s ratings agency has cut South Africa's sovereign credit rating to 'BB+' from 'BBB-' and the long-term local currency rating to 'BBB-' from 'BBB', both with a negative ... more