July Inflation Eases To 3.8% As Food, Transport Costs Fall

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The decrease in food prices and transport costs has relieved Ugandan households, the burden of the general consumer price rise (inflation) in the last 12 months ending July 2025.The Uganda Bureau of Statistics (UBOS) consumer price index report for the period reveals that prices increased by 3.8% over the last 12 months, ending in July 2025, a small drop from 3.9% in June.Though this may seem like a small change, it signals that the cost of living is not rising as quickly as before. Worthy to note is that, on average, goods and services are still getting more expensive, but the pace at which prices are rising has slightly slowed down.Governments and economists usually try to keep inflation at a manageable level, neither too high nor too low. The Bank of Uganda has set a medium-term target of keeping inflation around 5%. Anything close to or below that is generally seen as stable. The current rate of 3.8% suggests that, although prices are rising, the situation is still under control.According to UBOS, one of the biggest reasons inflation slowed down in July is that food prices increased more slowly, and in some cases, even dropped. Food is one of the biggest expenses for most Ugandan households, so any change in food prices has a major impact on families. “The price of tomatoes fell by 8.1% in July, compared to a small increase of 0.9% in June. Irish potatoes were cheaper by 4.6%, more than the 0.6% drop in June,” the report states. “Matoke prices, while still high, grew more slowly, up by 35.3% in July compared to 37.7% in June.”It also revealed that Milk prices rose by 3.6%, which was less than the 8.9% jump seen the month before. Dry beans rose by 8.3%, again lower than the 12.1% rise in June. These changes helped slow down the food category inflation to 3.2% in July, from 4.7% in June. This is good news for families who rely on local markets for fresh produce. Transport costs, which include taxis, buses, and other passenger services, became even cheaper in July. Prices in this area fell by 3.5%, compared to a 2.7% drop in June.Lower fuel prices contributed to this trend: “Petrol prices went down by 6.2%, Diesel fell by 3.4%, and Kerosene dropped by 3.5%.”Electricity bills also came down, falling by 4.3%, following a 5.7% drop in June. While this does not mean power is cheap, it shows a continuing trend of easing energy costs. This category, known as Energy, Fuel, and Utilities, recorded no change (0.0%) in July. This was an improvement from the small decrease of 0.2% registered in June.However, not all prices are falling, though. Some everyday items continue to get more expensive. Sugar prices jumped by 9.6% in July, more than double the 3.9% increase in June. Maize flour, a staple in many Ugandan homes, rose by 13.8%, up from 12.6% the month before. Mukene (silverfish) prices fell by 12.8%, but that was a smaller drop compared to 15.7% in June.In general, prices for “other goods” like packaged foods, soap, and drinks remained stable at 3.7%, the same level as June.Inflation rates are not the same across Uganda. Different regions saw different price trends depending on local conditions, demand, and transport costs. Masaka had the highest inflation at 5.1%, driven by higher transport and health-related expenses.Mbale had the lowest at just 0.2%, helped by falling food and fuel costs. In Kampala’s high-income areas, inflation stood at 4.9%, up slightly from 4.8% in June, due to rising restaurant and food prices.-URNThe post July Inflation Eases To 3.8% As Food, Transport Costs Fall appeared first on Business Focus.