Uganda's Inflation Holds Steady at 3.1% in December

Uganda’s Inflation Holds Steady at 3.1% in December

Uganda’s headline inflation remained steady at 3.1% in December 2025, reflecting mixed price movements across major expenditure categories, according to the Uganda Bureau of Statistics (UBOS).

Food Prices Drive Higher Inflation

Food crop prices saw the largest increases in December. The inflation rate for food and related items rose to 4.4%, up from 4.0% in November. Key drivers included Irish potatoes, which rose by 2.3% after a significant drop of 5.9% in November. Cabbage prices surged by 35.7%, reversing a slight 0.6% decline from the previous month. Passion fruits saw an 11.1% increase after a previous drop of 1.1%.

Additionally, fresh cassava prices climbed 8.9%, while onion prices fell more slowly by 3.7%.

Higher Costs in Energy, Fuel, and Utilities

Energy, fuel, and utilities saw higher inflation, rising to 5.1% in December from 3.6% in November. Solid fuels, such as firewood and charcoal, contributed significantly to this increase, with firewood rising by 4.9% and charcoal increasing by 5.3%. Petrol prices also rose by 1.4%, and water charges edged up 0.7%.

Core Inflation Eases Slightly

Core inflation, which excludes food and energy prices, decreased slightly to 3.1% from 3.2% in November. This decline was largely due to a drop in services inflation, which fell to 4.0% from 4.2%. However, some service costs experienced sharp increases, such as holiday food and beverage packages, which surged to 15.2% from 1.3% the previous month.

Core goods inflation rose marginally to 2.5%, with notable increases in prices for dried fish, live chicken, and clothing items.

Annual Inflation Overview for 2025

For the full year, UBOS reported that the average headline inflation for 2025 rose to 3.6%, up from 3.3% in 2024. This increase was mainly driven by higher core inflation, which climbed to 3.8% from 3.6% in 2024.

Uganda’s inflation for December reflects mixed trends across various sectors, with food and fuel playing a significant role in driving inflation. However, core inflation showed slight easing, reflecting some stability in the economy.