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Uganda’s Inflation Drops to 3.4% in March, UBOS Report Shows
By Naomi Namusoke/KMA Updates
Kampala, Uganda – The Uganda Bureau of Statistics (UBOS) has reported a drop in the country’s inflation rate for March 2025, with the annual headline inflation declining to 3.4% from 3.7% in February. This decline has been primarily driven by a reduction in core inflation, which fell to 3.6% in March from 3.9% in February.
Speaking at a media briefing, Samuel Echoku, a senior statistician at UBOS, has attributed the drop in inflation to a decrease in annual services inflation, which stands at 4.9% in March compared to 5.4% in February. He has also noted that this decline is mainly due to falling costs in passenger transport by road, as well as hotel and lodging service charges, which dropped from 4.4% in February to 3.2% in March.
Other goods have also contributed to the easing inflation. The annual other goods inflation stand at 2.6% in March, largely driven by a sharp drop in the prices of fish and seafood, which registered an inflation rate of 9.4% compared to 13.9% in February. Additionally, the price of rice declined significantly, dropping by 5.5% in March from 3.2% in February.
While consumer inflation eased, the cost of residential properties has continued to rise. The annual residential property inflation, measured by the Residential Property Price Index (RPPI) for the past four quarters, recorded a 3.8% increase. This is largely attributed to rising housing prices in Kawempe and Rubaga, which saw a 4.7% increase compared to 1.1% in previous quarters.
Similarly, property prices in Wakiso rose by 2.6%, up from 1.0%, while Kampala Central and Makindye saw a 3.6% increase, though lower than the 5.5% previously recorded.
Despite the decline in inflation, Ugandans have been advised to remain cautious in their spending, as economic conditions remain dynamic. With the cost of essential goods fluctuating and property prices rising, financial experts encourage consumers to budget wisely to sustain their purchasing power.
UBOS continues to monitor inflation trends, with the next updat