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Raw material prices are increasing, according to Ubos data

Prices of major goods are beginning to rise again, threatening the recovery of purchasing power and economic growth.

In the 12 months to April, data from the Uganda Bureau of Statistics (Ubos) indicates that fuel, a key driver of inflationary pressures, recorded increases: a liter of petrol increased by 6.9 percent, from 5,086 shillings to an average of 5,457 shillings. while diesel increased by 0.5 per cent to Sh5,117 from Sh5,089 per litre.

Other products that continue to record an increase in prices include mukene or silverfish, the price of which has increased by Sh3,560 per kilogram to Sh18,831 from Sh15,271.

The price of onions has almost doubled in the last 12 months: a kilogram now costs 5,852 shillings (up from 2,880 shillings in April 2023), while the price of pineapples has increased from 1,462 shillings to 1,805 shillings.

However, some basic products, whose prices had increased last year, are beginning to decline, the most notable being laundry soap and refined cooking oil.

Over the 12 months, the price of a bar of laundry soap has reduced by 505 shillings, from 6,371 shillings in April last year to 5,866 shillings, while the cost of refined cooking oil has reduced from 9,442 shillings at 8,882 shillings per liter. .

Price movements have therefore impacted the overall outlook for inflation, which in the 12 months to April rose slightly to 3.5 percent from 3.4 percent, largely due to an increase in the price of seafood (fish), even as it remains below the Bank of Uganda’s 5 percent Target.

However, the Bank of Uganda has previously projected that if left unchecked, inflation is likely to rise above target in the third quarter of 2024.

Ubos Director of Macroeconomic Statistics Ms Kaudha Aliziki Lubega said while releasing the consumer price index in Kampala that during the period inflation of fish and other seafood products increased from 10.1 percent to 16.5 percent. percent, while prices for particularly dry mukene increased by 28.8 percent compared to 6.9 percent in March.

Refined oil prices recorded negative inflation of -8.6 percent compared to -14.1 percent in March, while chicken prices increased by 3.6 percent compared to 0.3 percent.

During the period, Aliziki noted that the price of hotels and accommodation increased by 7.6 percent compared to 1.9 percent in March, while inflation of food crops and related items, however, decreased to -2.4 percent from 0.4 percent.

Energy fuel and utility inflation rose to 7.9 percent due to a 1.4 percent increase in electricity rates and a 6.9 percent increase in gasoline prices.

Ubos data also indicates that the price of charcoal, which is a key component for cooking in many urban and rural areas, increased by 18.8 percent.

Price changes in 12 months until April 2024

Article

Unit

April 2023 Price

April 2024 Price

Mukene

1kg

15,271 shillings

18,831 shillings

Soap

1kg

6,371 shillings

5,866 shillings

refined oil

1 liter

9,442 shillings

8,882 shillings

Potatoes

1kg

2,295 shillings

2,095 shillings

Onions

1kg

2,880 shillings

5,852 shillings

Pineapple

1kg

1,462 shillings

1,805 shillings

Tomatoes

1kg

2,694 shillings

2,571 shillings

Petro

1 liter

5,086 shillings

5,457 shillings

Diesel

1 liter

5,089 shillings

5,117 shillings