Uganda inflation rate up slightly to 3.9%

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Uganda’s annual headline inflation registered a marginal increase from 3.8% in May to 3.9% in June 2025, the finance ministry's performance of the economy report for June 2025 says.

“This was mainly explained by the increase in price for some food items such as matooke (bananas), dry beans, sweet potatoes, passion fruits and pineapples,” says the report.

Nonetheless, for the whole of financial year 2024/25, headline inflation was generally subdued, averaging at 3.5%.

The report says this was mainly on account of the prudent monetary policy that was carefully coordinated with fiscal policy, and good harvests that ensured steady food supply during the financial year.

Headline inflation refers to the rate at which prices of general goods and services in an economy change over a period of time, usually a year, while core inflation is a subcomponent of headline inflation that excludes items subject to volatility in prices.

It excludes energy, fuel, utilities, food crops and related items.

Annual core inflation remained unchanged at 4.2% between May and June 2025. However, for the whole of the financial year 2024/25, annual core inflation averaged 3.9%, which is well within the policy target of 5%.

Annual inflation for food crops and related items increased to 4.7% in June 2025 from 4.3% in May 2025.

The major drivers for this increase included dry beans and matooke (bananas), whose prices, on average, increased by 12.1% and 37.7%, respectively, between June 2025 and June 2024.

Other food items that registered a significant increase in price included passion fruits, carrots and pineapples, whose prices increased by 5.3%, 5.1% and 22.3%, respectively, in June 2025 compared to the same month of the previous year.