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Inflation Steady at 3.1% in December Despite Rising Food and Fuel Prices!

The Homeland Newspaper by The Homeland Newspaper
January 2, 2026
in Business, News
0
Headline inflation in Uganda held at 3.1% in December 2025, as rising costs of food crops, fuel, and utilities were balanced by easing pressures in other sectors, according to the Uganda Bureau of Statistics.

Headline inflation in Uganda held at 3.1% in December 2025, as rising costs of food crops, fuel, and utilities were balanced by easing pressures in other sectors, according to the Uganda Bureau of Statistics.

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Uganda’s headline inflation remained unchanged at 3.1% in the year to December 2025, reflecting mixed price movements across major expenditure categories, according to the Uganda Bureau of Statistics (UBOS).

Food crop prices recorded the largest increases, with annual inflation for food and related items rising to 4.4% in December from 4.0% in November.

Notable drivers included Irish potatoes, up 2.3% after a 5.9% fall in November; cabbage, which surged 35.7% following a slight 0.6% decline; and passion fruits, up 11.1% after falling 1.1% previously.

Fresh cassava prices climbed 8.9%, while onion prices fell at a slower pace of 3.7%.

Energy, fuel, and utilities also saw higher inflation, rising to 5.1% in December from 3.6% in November.

The increases were led by solid fuels, with firewood prices rising 4.9% and charcoal 5.3%. Petrol prices increased by 1.4%, while water charges edged up 0.7%.

Core inflation eased slightly to 3.1% from 3.2% in November, largely due to a decline in services inflation to 4.0% from 4.2%.

Some service costs, however, rose sharply, including holiday food and beverage packages, which jumped to 15.2% from 1.3% the previous month.

Core goods inflation increased marginally to 2.5%, driven by dried fish, live chicken, and clothing items.

For the full year, UBOS reported that average headline inflation for 2025 rose to 3.6%, up from 3.3% in 2024, mainly due to higher core inflation, which climbed to 3.8% compared to 3.6% in 2024.

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