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By Naome Namusoke/KMA Updates
KAMPALA, Uganda – The Uganda Bureau of Statistics (UBOS) has announced that the country’s annual headline inflation rose slightly to 3.9% in June 2025, up from 3.8% in May, largely driven by increasing food prices.
The figures, released on Monday, 30th June 2025, were measured using the Consumer Price Index (CPI), which tracks changes in the cost of goods and services consumed by households.
According to Mr. Samuel Echoku, Head of Macro Statistics at UBOS, the uptick in inflation is mainly attributed to annual food crop inflation, which jumped to 4.7% in June, compared to 4.3% the previous month.
“This was mainly due to rising prices of dry beans (12.1%, up from 9.2% in May), plantains (matooke) which surged by 37.7% (up from 29.8%), passion fruits (5.3%, up from -2.3%), and Irish potatoes, which saw a slower decline of -0.6% compared to -5.5% in May,” the UBOS statement revealed.
Despite the uptick in food prices, core inflation which excludes food, energy, and utilities remained unchanged at 4.2% in June. UBOS attributed this stability to a constant rate of annual services inflation, which stood at 4.7%, the same as in May.
This was mainly influenced by a sharp rise in outpatient care services, which increased from 4.5% in May to 7.9% in June. Meanwhile, restaurant and accommodation services inflation also edged up slightly from 4.6% to 4.7%.
However, annual inflation for other goods slightly dipped from 3.8% to 3.7%, largely due to reduced sugar prices (from 4.0% to 3.9%).
Staple foods experienced significant price hikes, with rice prices increasing by 7.6% (up from 3.7%) and maize flour prices spiking from 7.4% to 12.6%.
Conversely, annual energy, fuel, and utilities (EFU) inflation declined to -0.2% in June, from -0.9% in May, largely due to falling firewood prices (7.8% from 8.4%).
Other notable trends in the energy sector included:
Kerosene prices dropped further to -4.1%, down from -4.0%
Charcoal prices rose to 4.6% (up from 2.6%), with a sack now averaging UGX 80,000
Diesel prices fell by -4.7% (from -6.0%)
Liquefied propane gas (LPG) declined to -4.9% (from -6.4%)
In a surprising development, construction sector inflation eased, with non-residential building inflation slowing to 0.7% (from 1.0% in April), and residential building construction also dropping to 0.7%.
This slowdown could reflect cautious investor sentiment amid looming economic and political uncertainties.
The inflation report comes just weeks after the launch of the UGX 72.136 trillion national budget for the 2025/2026 financial year, which began on 1st July 2025.
During his budget speech on 12th June, Finance Minister Matia Kasaija highlighted the government’s focus on wealth creation, infrastructure development, and economic transformation.
However, economists caution that the upcoming 2026 general elections could lead to heightened public spending, potentially pushing inflation higher.
“Consumers should prioritize essentials and avoid wasteful spending,” advised economic analysts, warning that inflation could reach double-digit levels if not carefully managed.
As Uganda enters a critical fiscal and political period, economic experts stress the need for prudent financial planning at both household and national levels.