economy 30 June 2026 Daily Monitor (Uganda)
Uganda's Inflation Hits 3.7% Driven by Soaring Fuel and Transport Costs
Uganda's annual inflation rate has climbed to 3.7% in June 2026, a noticeable increase from May's 3.2%, largely attributed to escalating fuel prices and higher transport service charges. Source: https://www.monitor.co.ug/uganda/news/national/high-fuel-prices-push-uganda-s-inflation-to-3-7-per-cent-5514436
Uganda is experiencing a rise in its annual inflation rate, reaching 3.7 percent in the twelve months leading up to June 2026. This represents an increase from the 3.2 percent recorded in May, according to the Uganda Bureau of Statistics (UBOS).
The primary catalyst for this upswing is the significant increase in the cost of energy, fuel, and utilities. Annual inflation in this sector surged to 11.9 percent in June, up from 9.1 percent in May. Specifically, the price of petrol saw a substantial jump of 26.3 percent year-on-year, while diesel prices rose by 37.3 percent, and kerosene by 31.7 percent.
Transport services also contributed heavily to the inflationary pressure. Passenger transport charges saw an increase of 11.9 percent compared to 9.9 percent in May. This escalation in transport costs, coupled with rising fuel prices, is expected to diminish household purchasing power, forcing consumers to allocate more of their income towards essential goods and services.
While fuel and transport were major drivers, other sectors also saw price increases. Education services experienced a rise of 5.7 percent, and certain food items like rice, beef, and fish also became more expensive. Inflation for rice increased to 3.1 percent, beef by 6.7 percent, and fish by a significant 16.3 percent year-on-year.
However, UBOS noted that annual inflation for food crops remained relatively stable at 0.0 percent, down from 0.2 percent in May. This was partly due to price decreases in commodities like matooke, dry beans, onions, and carrots.
The Uganda Bureau of Statistics released these figures on June 30, 2026.