Uganda, Feb 6 – The Uganda Bureau of Statistics (UBOS) filed a report in the consumer price index that suggested motorists will have to dig deeper in their pockets to fuel their vehicles as the pump prices went up.
However, it was noted that all inflation dropped, as it would be worrying to some businesses. The sign will undoubtedly make consumers of products withhold their purchasing power in the hope of affordable prices in the future.
According to the CPI, the month-to-month inflation decreased by -0.3%, from the previous 3.3 per cent to settle at 3 per cent in January.
A number of traders who had hoped to sell more during the festive season were treated to a rude shock as consumers seemed not to be bothered by the festive activities. The business was lower than expected that made the monthly inflation to drop from December.
There is a drop in prices of goods and services such as cereals and sugar, following the negative inflation. The prices are set to rise slowly as the economy picks up. It is believed that there will be no much difference in the amount of money used to purchase goods or services betwixt the next and previous month.
Despite countries fighting to have a stable economy, external global factors have played a major role in the imbalance of the economy. Global oil price determine the prices of goods and services, and the strength of currencies. They affect a country’s export and import trade activities depending on the favourable times.
In January 2018, the inflation report revealed that fuel inflation went up by 0.8 per cent from the hitherto 0.3 per cent in December 2017.
The transport sector is the only sector to be directly affected by the rise in pump prices.
Food crop inflation also increased over the past month by 0.5 per cent from the 2.0 per cent drop in December 2017.