Business 5 August 2026 Daily Monitor (Uganda)
Uganda's Inflation Hits 4% Driven by Soaring Utility Costs
Annual headline inflation in Uganda has climbed to 4% for the 12 months ending July, a significant increase attributed primarily to higher prices for housing, water, and electricity. This marks the highest inflation rate seen since September 2025. Source: https://www.monitor.co.ug/uganda/business/markets/inflation-rises-to-4-on-surging-water-and-electricity-costs-5547450
Uganda’s cost of living has seen a notable uptick, with annual headline inflation reaching 4 percent in the year leading up to July 2026. This surge, the highest recorded since September 2025, is largely a consequence of escalating expenses in essential services.
According to the Uganda Bureau of Statistics (Ubos), the primary driver behind this inflation spike is the housing, water, electricity, gas, and other fuels category. This sector experienced a price increase of 6.7 percent in the year ending July, a substantial rise from the 4.9 percent recorded in the same period the previous month.
This category holds significant weight within the Consumer Price Index, second only to food and non-alcoholic beverages. In the same period, inflation for food and non-alcoholic beverages also saw an increase, rising to 3.1 percent from 2.6 percent in June.
Transportation costs have also continued their upward trend, with inflation in this sector climbing to 9.3 percent in July from 8.8 percent in June. This reflects increasing expenses for both passenger and goods movement, likely influenced by fuel prices and public transport fares.
While many sectors saw moderate price increases, some areas experienced a decrease in inflation. For instance, inflation in insurance and financial services eased to 10.1 percent from 12.6 percent, and health sector inflation dropped to 1.6 percent. Core inflation, which excludes volatile food and energy prices, remained stable at 3.2 percent.