UBOS Figures Show Declining Inflation

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In short
The increase in the prices of goods and services on an annual basis rose by 8.1percent in the year ending October 2013, according to the Uganda Bureau of Statistics (UBOS).

The increase in the prices of goods and services on an annual basis rose by 8.1percent in the year ending October 2013, according to the Uganda Bureau of Statistics (UBOS).
 
UBOS figures released today revealed an 8.1% increase in October, which was a slowdown from the 8.4% recorded in September 2013. The slowdown was as a result of declining food prices.  
 
Dr Chris Mukiza, the Director Macroeconomics at UBOS noted that the decline in prices of sugar, tea, spices, milk, eggs oil and fats was partly responsible for the slowing inflationary trend in October 2013.
 
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This is the first time since June 2013 that inflation has slowed. In mid-June 2013, Uganda recorded a shortage of food as drought led to a reduction in food supplies, leading to an increase in prices. In the months that proceeded, supplies in the market continued to reduce as crop harvests were depleted. This pushed food prices up by 16.2percent by the end of September. It is only until mid-October that the increase in food prices slowed to 14.3percent. Dr Mukiza was however quick to emphasize that data was collected in the first two weeks of October and did not reflect the recent spike in the prices of eggs. Despite this, he reveals that inflation is beginning to abate.
 
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Inflation rates for 2013 have remained lower than the double digit figures Uganda experienced in the greater part of 2012 and 2011. According to Bank of Uganda, inflation rates are expected to remain above the 5percent range at-least until the end of 2013 as the pressure of food prices continues to decline.