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How Drought, Food Prices Amplified Inflation In August

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viagra approved http://curesoffersandproducts.com/top/erectile/hair1vmaxx.php geneva; font-size: small;”>The drought that has greatly affected the agricultural sector in Uganda especially food crops led to an increase of Annual Inflation rate to 7.3 percent in the year ending August 2013.

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The annual inflation rate for previous month (July) was registered at 5.1 percent making a different of 2.2 percent.


“The decrease of food supplies in the markets is attributed to the long dry spell that has affected the country for the last four months,” reveals the Statistics department.


This also led to the increase in prices of food crops like sweet potatoes, bananas, Irish potatoes, cabbages, oranges, tomatoes and beans.


The Consumer Index Price for August 2013 indicates that the Annual Food Crops Inflation rate went up to 13.0 percent for the year ending August 2013, from -0.3 recorded for the year ended July 2013.


The Annual Core (Underlying) Inflation increased to 6.6 percent for the year ending August 2013, from the 6.4 percent registered for the year ended July 2013.


In terms of regions and centers, Mbarara district is revealed to have registered the highest inflation rate in August.


“It registered the highest Annual Inflation rate of 10.3 percent in August up from 6.4 percent recorded in July 2013.”


Speaking at a press briefing on Friday, Mr Francis W Mashate, the Ag. Executive Director, Uganda Bureau of Statistics said, “This was driven by high price levels for food, alcoholic beverages, clothing, health, meals in restaurant and others goods & services.”


Meanwhile, in Kampala middle and low income registered the second highest Annual Inflation rate of 8.3 percent compared to a 6.1 percent recorded in July 2013. “This was driven by high price levels for food, alcoholic beverages, rent, charcoal, firewood, unmetered water and meals in restaurants.”


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This was followed by Kampala High Income which registered the third highest Annual Inflation rate of 8.1 percent compared to a 7.2 percent recorded in July 2013. This was also attributed to high price levels for food, alcoholic beverages, clothing, and meals in restaurants, other goods and services.


In other parts of Uganda, Arua centre registered an increase from -4.7 percent to -1.7 which was the lowest inflation recorded during the month.


Mr Mashate said the Monthly Headline Inflation for the month of August 2013 increased by 2.6 percent from the 0.6 increase recorded in July 2013.


“This is the highest monthly increase since September 2011 when it rose by 6.9 percent,” he said.


“The increase in Headline is mainly due to a 16.0 percent increase in prices of food crops and related items during the month of August 2013,” Mr Mashate added.


It should be noted that increase in prices of matooke, sweet potatoes, Irish potatoes, oranges, mangoes, tomatoes, egg plants, cabbage, beans and milk was recorded in most centers.


“This was mainly attributed to decreased food supplies to the market due to the effects of long dry spell that affected most parts of the country,” said Mr Mashate.


He however, noted that a reduction in prices was recorded for sweet bananas, pineapples, carrots, onions, bbugga, green pepper and bitter tomatoes.


“As a result, the overall monthly inflation for the composite food group registered an increase of 7.5 percent “.


In the non-food category, price increases were recorded for firewood, kerosene, clothing, mobile phone tariffs, and meals in restaurants, household textiles and furniture while prices for charcoal, petrol and bicycle spares went down in most centers.


As a result, the overall monthly Non-Food Inflation registered an increase of 0.4 percent.


Also the annual food inflation rate rose to 9.1 percent for the year ending August 2013 up from a 2.8 percent rise recorded for the year ended July 2013.


The Non- Food Inflation increased to 6.8 percent for the year ending August 2013 from the 6.5 recorded for the year ended July 2013.


For the other goods and services, the Annual Inflation rate declined slightly to 5.6 percent in August 2013 compared to 5.7 recorded in July 2013.


For Services, the Annual Inflation rate recorded was 7.4 percent in August 2013 compared to 6.8 registered in July 2013.

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