(3 minutes read)
- Ugandans are facing pangs of inflationary spiral due to the combined effect of Covid-19 pandemic and the ongoing Russian-Ukraine war. According to the United Nations Food and Agriculture Organization (FAO), highest increase in prices is noticed in vegetable oil prices, which rose another 23 percent in March from its previous peak, according to FAO
Ugandans are facing pangs of inflationary spiral due to the combined effect of Covid-19 pandemic and the ongoing Russian-Ukraine war.
According to the United Nations Food and Agriculture Organization (FAO), the highest increase in prices is noticed in vegetable oil prices, which rose another 23 percent in March from its previous peak, according to FAO. The Ugandans are importing foodstuff mostly from Russia and Ukraine, which are major producers of foodstuff in the world.
While the impact on the average citizen is severe, some analysts blame the market economy as the villain of the piece. They feel that the government should resort to administrative pricing to cool down the upward rising prices. They opine that Uganda will have to make strategic changes and look for new suppliers. But that is not going to be an easy task. Kampala imported 48% of its Wheat from Russia and Ukraine.
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Ukraine and Russia together meet 29% of global wheat experts and 62% of sunflower oil. The war is exacerbating food price inflation in emerging markets and developing economies. It is impacting some of the poorest and most vulnerable countries.
