(3 Minutes Read)
The Uganda shilling recovered from a record low of Ush3, 942 against the US dollar in August 2023; a source of external inflation pressures tied to imported goods, to less than Ush3, 800 posted in June 2024 on the back of tight monetary policy actions and increased coffee exports.
Ugandan consumers could get enticed to spend big as inflation rates fall and prices of commodities head south. The latest data from the Bank of Uganda (BoU) shows inflation levels averaged 3.2% in the financial year 2023/24 while annual headline inflation clocked 3.9% at the end of June 2024. Annual headline inflation stood at 4% in July.
The Uganda shilling recovered from a record low of Ush3, 942 against the US dollar in August 2023; a source of external inflation pressures tied to imported goods, to less than Ush3, 800 posted in June 2024 on the back of tight monetary policy actions and increased coffee exports. Easing inflation pressures felt in the second half of 2024 are partly reflected in reduced prices for popular household items.
Read Also:
For instance, a kilogramme of sugar currently costs Ush4,000 ($1.1) in some trading centres compared to Ush4,500 ($1.2) per kilogramme recorded at the beginning of this year. A kilogramme of rice costs Ush3,000 ($0.8) in Kampala city suburbs compared to Ush3,500 ($0.9) recorded at the beginning of 2024, according to local retailers.
