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Uganda: Inflation drops slightly in June

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Uganda’s inflation has reduced slightly by 0.8 percent from 7.2 percent in May to 6.4 percent at the end of June.In its consumer price index released on Friday, the Uganda Bureau of Statistics (UBOS) attributed the decline to a reduction in food inflation which stood at 18.1 percent in June down from 23.1 percent in May.

Meanwhile annual core inflation dropped to 4.9 percent in June compared to 5.1 percent in May, indicating a 0.1 percentage point lower than the target of five percent.

The trend is attributed to the decline in services inflation from 4.5 percent in May to 3.9 percent in June.

UBOS’ Director of Macroeconomics Statistics, Dr Chris Mukiza, said the decline in average annual inflation means the rate at which prices increased in May 2017 was higher than for the period ending in June.

He pointed out favourable weather as one of the factors that led to an increase in the supply of especially vegetables and fruits leading to the decline in inflation.

Ugandans, especially farmers, have however been advised against selling all their produce because the drop in inflation does not mean it won’t rise.

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