Uganda’s annual headline inflation rose to 3.7 per cent in the 12 months to June 2026, up from 3.2 per cent recorded in May, driven by higher costs for some food items and services, particularly transport.
The Uganda Bureau of Statistics [UBOS] said annual core inflation, which excludes volatile items like energy, fuel and metered water, also increased from 3.0 per cent in May to 3.4 per cent in the year ending June 2026.
The development is expected to weaken the purchasing power of households, forcing them to spend more on essentials like food, rent and transport, which erodes disposable incomes.
Speaking during the release of the Consumer Price Index for the year ending June 2026 at Statistics House on June 30, Principal Statistician for Price Statistics at UBOS, Ms Juliet Nkayenga, said transport and education led the increase.
‘Over the last twelve months, passenger transport services charges increased to 11.9 percent in June compared to 9.9 percent. Education services increased by 5.7 percent compared to 4.1 in May,’ Ms Nkayenga said.
She said food prices also picked up. ‘Rice prices increased by 3.1 percent in June compared to 2.2 percent in May 2026. Beef increased by 6.7 percent in the year ended June compared to 6.1 percent in May. Fish and other seafood prices increased by 16.3 percent in June from 9.3 percent in May 2026,’ she said.
Ms Nkayenga added that annual Energy, Fuel and Utilities [EFU] inflation was another major driver, rising to 11.9 percent in the year to June from 9.1 percent in May.
In particular, annual Liquid Energy Fuels inflation increased to 26.2 percent in the year ended June, compared to 16.6 percent in the year ended May 2026.
‘For instance, the price of petrol increased by 26.3 percent compared to 16.6 percent recorded in the year ended May 2026. The price of diesel increased by 37.3 percent compared to 21.5 percent. The price of kerosene increased by 31.7 percent compared to 25.4 percent, and the price of cooking gas increased 5.4 percent compared to 1.1 percent recorded in the year ended May 2026,’ she said.
However, UBOS figures indicate that annual food crops and related items inflation was stable at 0.0 percent in the year to June 2026, down from 0.2 percent in May.
‘This was driven by prices of matooke, whose price change was minus 6.6 per cent compared to minus 3.4 per cent recorded in the year ended May 2026. Dry beans recorded minus 7.2 per cent compared to minus 2.6 percent. Onions recorded minus 4.7 per cent compared to 14.3 per cent. Carrots recorded minus 7.6 per cent compared to 0.9 per cent recorded in the year ended May 2026,’ Ms Nkayenga said.