Uganda’s inflation rate has slowed to 3.3% in 2024, down from 5.4% the previous year, according to the Uganda Bureau of Statistics (UBOS).

The Annual Average Headline Inflation for 2024 was driven by a combination of price stability in several key sectors and a deceleration in core inflationary pressures.

The food sector has been a mixed bag in 2024. While the Annual Food Crops and Related Items Inflation remained negative at -0.7%, it represented a notable improvement from the -4.0% seen in November.

Energy and fuel costs, a critical factor influencing Uganda’s economy, recorded significant volatility. Annual Energy, Fuel, and Utilities (EFU) Inflation stood at 1.0% in December, down from 2.2% in November.

Improved agricultural yields due to favourable weather conditions contributed to increased crop production, alleviating the pressure on food prices.

However, challenges remain, particularly with perishables like tomatoes and onions, which saw significant price swings.

Policy interventions, such as measures introduced by the Bank of Uganda to manage liquidity and curb inflationary pressures, have been effective.