Kampala, Uganda – Uganda’s annual inflation rate saw a slight increase in February, according to the Uganda Bureau of Statistics (UBOS). The headline inflation, measured by the Consumer Price Index, rose to 3.7 percent for the 12 months ending February 2025, up from 3.6 percent in January 2025.
The primary driver behind this uptick was a surge in food prices, particularly in the “Food Crops and Related Items” category. UBOS reported that annual food inflation jumped to 4.3 percent in February, a significant rise from the 0.2 percent recorded in January.
“This was mainly attributed to a rise in the prices of Cooking Bananas (Matoke),” the UBOS report stated, noting a 7.6 percent increase compared to a 1.4 percent decrease in January. “Tomatoes prices [also increased] by 13.1 percent compared to 3.5 percent in January 2025, [and] Dry beans prices by 4.5 percent compared to 0.9 percent in January 2025.” Interestingly, fresh cassava prices saw a smaller decrease, moving from a 19.2 percent drop in January to a 1.4 percent drop in February.
Meanwhile, core inflation, which excludes volatile items like food and energy, showed a slight decrease. It registered 3.9 percent in February, down from 4.2 percent in January.
“The main driver of Annual Core Inflation is the Annual Services Inflation recorded at 5.4 percent in February 2025 compared to 6.3 percent registered in January 2025,” UBOS explained. This decrease was largely attributed to a drop in education service inflation, which fell from 10.3 percent in January to 6.6 percent in February, as well as decreases in passenger transport by road and hotel and lodging service charges.
However, not all core inflation components decreased. “Annual Other Goods Inflation recorded 2.7 percent in the year ending February 2025 compared to 2.5 percent registered in the year ended January 2025,” the report stated, highlighting increases in tilapia fresh prices.
Energy, fuel, and utilities also played a role in the overall inflation picture. “Annual Energy Fuel and Utilities (EFU) Inflation recorded 0.2 percent in the year ending February 2025 compared to 0.3 percent registered in the year ended January 2025,” UBOS reported. Solid fuels, particularly charcoal, saw a price increase, while liquid energy fuels, such as petrol and diesel, continued to decrease.
“Liquid Energy Fuels Inflation recorded minus 6.9 percent in the year ending February 2025 compared to minus 7.5 percent registered in the year ended January 2025 driven mainly by Petrol prices that decreased by minus 8.4 percent in February 2025 compared to minus 9.3 percent in January 2025,” the report detailed.
In summary, the February inflation figures highlight the impact of fluctuating food prices on Uganda’s economy, alongside subtle shifts in core inflation and energy costs.