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

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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).

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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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