Uganda’s annual headline inflation dropped to 3.4% in March 2025, down from 3.7% in February, signaling some relief for households grappling with rising costs.
The Uganda Bureau of Statistics (UBOS) attributed the decline to lower food and service prices, though energy and fuel costs saw a slight increase.
Key Drivers Behind the Decline
- Core inflation (excluding food and energy) fell to 3.6% from 3.9%, driven by reduced service costs.
- Food inflation dropped sharply to 3.1% (from 4.3%), with onion prices plunging 28.6%.
- Services inflation slowed to 4.9%, down from 5.4%, partly due to cheaper hotel and lodging charges.
However, energy and fuel inflation inched up to 0.3%, with solid fuels like charcoal rising 7.3%—a concern for low-income households.
Monthly Price Movements: Mixed Trends
While annual inflation cooled, monthly prices rose 0.2% in March, with notable increases in:
- Sweet potatoes (Shs 1,029 to Shs 1,116/kg)
- Passion fruits (Shs 6,286 to Shs 7,823)
- Maize flour and local chicken
Fuel prices saw minor relief, with petrol dipping to Shs 4,971 per litre (from Shs 4,983), though still higher than February’s Shs 4,659.
What This Means for Ugandans
The slowdown in inflation offers some breathing room, but economists warn that volatile food prices and rising fuel costs could keep pressure on budgets.
“The drop in food inflation is welcome, but households must stay cautious—global oil trends and local harvests will shape coming months,” said a Kampala-based analyst.
