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Uganda’s annual inflation rate saw an uptick to 3.4% in February, compared to 2.8% in January, as reported by the Consumer Price Index released by the Uganda Bureau of Statistics (Ubos).
The monthly inflation rate surged by 0.5% in February, a significant increase from the previous month’s stagnant rate of 0.0%. Ubos attributed this marginal rise in commodity prices to the reopening of schools during the month.
The inflationary pressure was chiefly fueled by the annual core inflation, which stood at 3.4%, a notable jump from January’s 2.4%.
Aliziki Lubega, the director of economic statistics at Ubos, highlighted a substantial increase in inflation within the education services sector during the review period. She pointed out alterations in fee structures across various school levels as a primary driver behind the inflation surge.
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“We have observed significant changes in fee structures across different school levels, leading to the observed inflationary trend,” Lubega explained.
Education services inflation surged to 14.5% in February, marking a stark contrast from the 6.1% recorded in January. Additionally, other contributing factors to the inflationary surge included increased passenger transport fares, accommodation services, and fluctuating prices of staple food items like matooke.
The reopening of schools after an extended closure period due to the COVID-19 pandemic exerted notable influence on consumer spending patterns, thereby impacting inflationary trends across various sectors of the economy.
The pronounced inflationary pressures in education services underscore the significance of educational costs in the overall inflation dynamics, highlighting the importance of monitoring and managing price fluctuations within this sector.
As Uganda navigates through economic recovery and stabilization efforts post-pandemic, careful monitoring of inflationary trends remains crucial for policymakers to implement targeted interventions aimed at mitigating adverse effects on consumers and ensuring sustainable economic growth.
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