A sharp spike in public transport fares and an aggressive surge in pump prices have pushed Uganda’s annual headline inflation up to 3.2% for the year ending May 2026, up from 3.0% recorded in April.
The latest data, released by the Uganda Bureau of Statistics (UBOS), highlights a growing divergence between soaring energy and service costs and a refreshing drop in food crop prices across the country.
Presenting the Consumer Price Index (CPI) report, UBOS Senior Statistician Paul Echodu revealed that while headline inflation edged upward, annual core inflation—which excludes volatile food and energy items—held steady at 3.0%.
The upward pressure on core inflation was overwhelmingly driven by annual services inflation, which climbed to 4.6% from 4.1% in April. Road passenger transport fares skyrocketed by 10.6% in May compared to just 2.1% in April, heavily impacting commuters.
Conversely, annual core goods inflation softened significantly to 1.0% in May, down from 2.0% in April. This relief was supported by drops in sugar prices, which fell 5.8% (deepening from a 3.4% decline in April). However, some commodities bucked the trend: processed fish prices ticked up to 9.3%, and overall rice prices remained elevated despite a slower annual growth rate.
Good news came from the agricultural sector, as annual food crops and related items inflation slowed to 0.2% in May from 0.6% in April. Excellent yields for key staples drove prices down significantly.
Matooke plummeted to minus 3.4% in May from a hefty 14.1% increase in April. Fresh beans dropped further to minus 30.1% from minus 13.8% in April. Cassava and sweet potatoes fell to minus 17.7% and minus 10.5% respectively.
The most aggressive spike was seen in the annual energy, fuel, and utilities (EFU) inflation, which jumped to 9.1% in May from 6.1% in April. This was directly fueled by a domestic pump price crisis.
Petrol prices rose by 16.6% annually in May compared to 8.7% in April, while diesel jumped by 21.5% compared to 10.8% in April. Kerosene experienced the steepest annual change at 25.4%, up from 7.5% the previous month. Liquefied gas also ticked up slightly by 1.1% in May, reversing a 0.1% decrease in April.
In Kampala, retail stations are currently selling petrol at approximately Shs 6,619 per litre and diesel at Shs 6,490 per litre, placing immense pressure on both motorists and commercial transporters.
Geographically, Kampala High Income and Masaka registered the highest annual inflation at 3.9%. Kampala’s numbers were driven by transport costs (rising to 7.4%) and an increase in alcoholic beverages.
Masaka’s inflation was similarly pushed by transport (7.6%) and household equipment. Mbale recorded the lowest inflation at 1.7%, thanks to softening accommodation services and lower housing utility adjustments.
Shifting focus to industrial inputs, UBOS Principal Statistician Irene Musiitwa presented the Construction Sector Indices for the year ending April 2026. The index, which tracks the cost of materials, equipment, and labor, indicates rising pressures for contractors. On an annual basis, construction inflation climbed to 1.6% in April 2026, up from 0.7% in March.
Musiitwa noted that specialized construction activities (demolition, electrical, and plumbing) led the cost hikes at 2.0%, up from 0.6% in March. Building construction rose to 1.2% compared to 0.8% in March, while civil engineering works like roads and utilities edged up to 0.9% from 0.6%.
Essential structural materials also saw a notable turn. Cement prices rose by 2.6% annually in April, up sharply from a minor 0.3% increase in March. Paints and varnishes increased by 1.7%, while sand climbed 2.1%.
Relief was found in clay and murram prices, which went down by 1.3%, and hardware like nails, bolts, and screws, which fell by 0.5%. On a month-on-month basis, the overall construction index grew by 1.1% in April compared to 0.8% in March, emphasizing that building a home or executing public infrastructure in Uganda is steadily growing more capital-intensive as 2026 progresses