Food Prices Push Annual Inflation Down to 4.9 Percent

The prices of goods and services fell further in the month of June due to the increase in food harvests on the market. The prices of Irish potatoes, pineapples, sweet potatoes, plantains, milk, and sugar dropped.

Annual Food Inflation decreased to 7.1% for the year ending June 2014 from the 8.2% for the year ended May 2014. The Uganda Bureau of Statistics (Ubos) announced on June 30 that core inflation, the measure of the changes in prices of goods and services less food crops and electricity, dropped to 2.7 per cent in June from 3.3 per cent registered in May.

Headline inflation, which measures general changes in the prices of goods and services, dropped to 4.9 per cent in the year to June, from 5.4 per cent May. Bank of Uganda’s core inflation target is 5 per cent. The financial year 20132014 registered a 6.7% average annual headline inflation compared to 5.6% that was recorded for the financial year 20122013.

Source : The Independent