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August inflation reduces to 5.2%

Kampala, Uganda | JULIUS BUSINGE | Uganda’s annual headline inflation reduced from 5.7% for the year ended July 2017 to 5.2% for the year ending August 2017, representing a 0.5 percentage point drop, Uganda Bureau of Statistics announced on Aug. 31.

The statistics body attributed the drop to the decline in annual food crops inflation which is recorded at 11.8% for the year ending August 2017 compared to 12.9% for the year ended July 2017.

“The driver for the lower annual food crops inflation was fruits inflation that declined to 17.4% for the year ending August 2017 compared to the 24.2% registered during the year ended July 2017,” it said in a press release.

It added that annual core inflation declined to 4.1% for the year ending August 2017 compared to the 4.5% recorded for the year ended July 2017. This drop was due to services inflation that decreased to 3.3% for the year ending August 2017 compared to 4.0% recorded for the year ended July 2017.

Other goods inflation declined to 4.6% for the year ending August 2017compared to the 4.9% recorded during the year ended July 2017.

Earlier in the month, Bank of Uganda kept its key lending rate – the central bank rate – unchanged at 10% citing low levels of inflation in recent months.

 

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