KAMPALA: Food and non-alcoholic beverages, transport, and personal care were major drivers as the annual headline inflation soared to a record 6.3% in May 2022.
This is above the 5% upper limit of the Bank of Uganda monetary policy target.
While presenting the inflation figures in Kampala on Tuesday, May 31, 2022, Aliziki Lubega, the Director Macro Economic Statistics at Uganda Bureau of Statistics (UBOS), said in May, inflation rose to 6.3% from 4.9% of April due to an 11% increase in prices for matooke, tomatoes, pumpkins and maize grain.
Transport fares shot up by 4.4%, with diesel shooting up by 54%. Personal care experienced a 3.9% increase in May, furnishings 17.3%, alcoholic beverages, tobacco and narcotics saw a 2.3% increase, while recreation and sport saw a 3.3% increase.
On average, the retail price for a kilogramme of maize flour costs 2,700, compared to 1,806 in May 2021. Tomatoes cost 3,263 in May 2022 compared to 2,378 in May 2021. Cooking oil cost 11,111 in May 2022 while in May 2021, it was 7,344.
Rising prices of essential commodities has been persistent since the re-opening of the economy in January 2022.
This is partly attributed to the increased demand against the supply/production channels.
According to the revenue performance for the last three quarters (July 2021 to March 2022) Uganda Revenue Authority (URA) had a target of collecting slightly more than Shs16.5 trillion, representing 73% of the annual revenue collection target of slightly more than Shs22.3 trillion. But instead, the taxman collected Shs15.4 trillion, representing 69% of the annual target.
