Sunday, December 1, 2013

Inflation falls in November



Inflation falls in November
newvision
KAMPALA - Uganda's headline inflation rate fell sharply in the year to November as a rise in food prices slowed, the Uganda Bureau of Statistics said on Friday.

Consumer prices fell 0.7 percent during November, helping to hold the year-on-year inflation rate to 6.8 percent, down from 8.1 percent a month earlier. Core inflation, which excludes both food and fuel costs, fell to 7.0 percent from 7.2 percent in October.

"The annual food inflation rate for the year ending November decreased to 8.1 percent compared to the 10.9 percent recorded during the year ended October," the statistics office said in a statement.

"The decline in food inflation was driven by a reduction in prices of matooke (plantains), Irish potatoes, cassava, sweet bananas, oranges, tangerines, cabbages, tomatoes.... this is attributed to increased supplies of these items on the market."

Food prices eased 2.3 percent during the month. Food carries a 27.2 percent weighting in the consumer price index.

Uganda's central bank said last month that core inflation was expected to stay at 6.5-7.5 percent in the next 12 months before falling towards the bank's medium-term target of 5 percent in 201

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