The economic performance report of October 2024, released on November 22, 2024, has indicated a sharp fall in inflation triggered by the low prices of fuel, food commodities, and others.

The Ministry of Finance, Planning, and Economic Development indicated that Uganda’s inflation has reduced to 2.9% in October 2024, as compared to 3% in September 2024.

According to the report, this was attributed mainly to the reduction in prices of liquid energy petrol, diesel, and liquefied gas prices during the month of October.

“Specifically, average pump prices were UGX 5,205 per litre for petrol and UGX 4,765 per litre for diesel, down from UGX 5,311 and UGX 4,839 in September and October 2024,” part of the report read.

Additionally, annual food crops and related items’ inflation continued to decelerate due to good harvests resulting from favorable weather conditions and government interventions within the agriculture sector, such as agricultural extension services.

“The Purchasing Managers’ Index (PMI) was recorded at 52.9, above the 50-mark threshold signaling improvement in the business health of the Ugandan private sector,” the report read.

Read Also: Bank of Uganda Reports 3.7% Drop in Inflation for September 2024 

This was mainly explained by sustained expansions in new orders as firms hired additional staff amidst positive expectations for output in the coming year.

The report further highlighted that the Bank of Uganda reduced the Central Bank Rate (CBR) by 25 basis points to 9.75 percent in October 2024 from 10 percent the previous month, on account of a stable inflation outlook.

This positive outlook was largely attributed to continued recovery of the global economy, a stable exchange rate supported by export receipts and moderate import growth, and a prudent monetary policy that has effectively supported economic growth recovery while maintaining price stability.

However, Uganda’s imports from the East African Community region decreased by 2.8% to USD 264.10 million in September 2024, down from USD 271.62 million the previous month. Exports to the region also declined by 1.0% from USD 197.23 million to USD 195.22 million over the same period.