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Inflation Increases To 3 Percent

By Drake Nyamugabwa

Whereas other products and services that are recording a decline in inflation rates, communication services have been reported to be the main driver attributed to the increase in the annual headline inflation for the year ending February 2019 recorded at 3% compared to 2.7% registered during the year that ended January 2019.

During the release of the Consumer price index (CPI) for February 2019 at Statistics house on 28th February 2019, the Uganda Bureau of Statistics (UBOS) Acting Executive Director Imelda Atai Musana attributed the 0.3% point increase in Annual Headline Inflation to the Annual Core Inflation, which increased to 3.7 percent for the year ending February 2019 compared to the 3.4 percent registered for the year ended January 2019.

The CPI statement indicates that driver for the increase in Annual Core inflation was the Annual Communication Inflation as the main driver of the increase in the annual inflation including telephone and telefax, internet among others.

“The increase in Annual Headline Inflation is largely attributed to the Annual Core Inflation, which increased to 3.7 percent for the year ending February 2019 compared to the 3.4 percent registered for the year ended January 2019. The driver for the increase in Annual Core inflation was Annual Communication Inflation that increased to 21.4 percent for the year ending February 2019 compared to the 5.5 percent recorded for the year ended January 2019. In particular, Annual Telephone and telefax services Inflation increased to28.7 percent for the year ending February 2019 compared to the 7.0 percent recorded in January 2019,” Musana said

Other services and products including the Annual Energy, Fuels and Utilities (EFU) Inflation decreased to 5.9 percent for the year ending February 2019 compared to the 7.2 percent recorded for the year ended January 2019 and that the decline in Annual EFU Inflation was mainly due to Annual Liquid Energy Fuels Inflation that registered an 8.0 percent  for  the  year  ending  February  2019  compared  to  the  11.7  percent  recorded  for  the  year ended  January  2019 including  Annual  Petrol  Inflation that decreased  to  9.8  percent  for  the  year ending February 2019 compared to the 14.7 percent recorded during the year ended January 2019.

Meanwhile, the monthly headline inflation for February 2019 also registered an increase at 3% in February compared to 2% recorded in January 2019 driven by food crops and related items mainly vegetables, energy Fuel and utilities.

“Monthly InflationThe Monthly Headline Inflation for February 2019 has been recorded at 0.3 percent from the 0.2 percent recorded in January 2019.The increase in the Monthly Headline Inflation was attributed to the Monthly Food Crops and Related Items Inflation that registered 2.1 percent increase in February 2019 from the 0.4 percent recorded in  January  2019,” she said.

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