KAMPALA, Uganda — High-income areas of Kampala recorded the highest inflation rate in the country at 4.2 percent in December, even as the national headline inflation rate remained steady, according to the Uganda Bureau of Statistics.
The regional disparity was highlighted in a report released Wednesday at Statistics House, which showed that while some parts of the country experienced minimal price growth, the capital faced the highest inflationary pressure. In contrast, Mbale recorded the lowest inflation rate at 1.0 percent, a trend driven by falling prices for clothing and household items.
Nationwide, the annual inflation rate held firm at 3.1 percent in December, matching the rate seen in November. Aliziki K. Lubega, the UBOS director of economic statistics, said the overall economic picture remains stable, though she warned that food and energy prices require close monitoring.
The cost of food crops rose to 4.4 percent in December from 4.0 percent the previous month. Significant price increases were recorded for cabbage, which rose 35.7 percent, and green peppers, which jumped 25.2 percent. Other staples, including fresh cassava and passion fruits, also saw price hikes.
Energy and fuel costs also increased, with inflation in that sector rising to 1.4 percent from 0.6 percent. Higher costs for charcoal, firewood and petrol contributed to the rise, impacting household cooking and utility budgets.
The agency noted that these increases were balanced by a sharp decline in transport inflation, which dropped to 0.1 percent from 1.4 percent in November. Prices for clothing and restaurant services also slowed, helping to keep the national headline figure unchanged.
Core inflation, which excludes volatile food and energy costs, edged down to 3.1 percent from 3.2 percent.
For the full year, Uganda’s average inflation in 2025 was 3.6 percent, compared to 3.3 percent in 2024. UBOS officials attributed the annual increase to higher costs for services and nonfood items over the last 12 months.
