Inflation rate drops to 5.4% ahead of Budget Speech


view geneva; font-size: small; line-height: 150%;”>In a social media post, generic the Ministry has revealed that the Annual Inflation rate for the year ending May 2014 decreased to 5.4% from 6.7% in April.

This was largely attributed to food crops whose inflation decreased to 17.6% from 25.4%.

Annual Core (excluding food crops, Energy, fuel and Utilities) inflation also decreased to 3.3% from 3.4% and Energy, Fuel and Utilities (EFU) to 3.7% from 4.1%.

By budget time last year, the country was experience a inflation rate of 3.6% with total GDP of US$ 22 billion; export rate earnings US$ 4.9 billion; remittances US$ 767.26 million; imports US$ 7.45 billion; investment inflows US$ 1.47 billion; overall balance of payments (a surplus) of US$ 3.3 billion.

These according to the president Museveni in his budget speech during the last financial year, were good figures especially compared to the country’s starting point in 1986.

President Museveni noted that the comparative figures by that time were: GDP rate of growth 0.6%; size of GDP was US$ 1.55 billion; export earnings were US$ 411 million; inflation rate was 144%; investment inflows were US$ zero (between 1987-1993 they grew to US$ 9 million, annual average); foreign exchange reserve were US$ 16 million.

Last financial year, the economy was recorded to have grown by 5.1%. The sectors which grew fastest were: industry (6.8%); services (4.8%); and construction (8.4%). The manufacturing sector grew by 4.2% (2012//13). Agriculture grew by 1.4% (2012//13).


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