Ugandan households are facing renewed cost-of-living pressure after annual headline inflation accelerated to 3.7% in June 2026, up from 3.2% in May, as rising fuel prices drove up transport costs and pushed the prices of essential goods and services higher.
The latest Consumer Price Index (CPI) data released by the Uganda Bureau of Statistics (UBOS) shows that motorists, commuters and families relying on liquefied petroleum gas (LPG) for cooking are among those bearing the brunt of the latest price increases, highlighting how higher energy costs are rippling across the broader economy.
Petrol, diesel and kerosene prices all increased compared with the same period last year, while the cost of cooking gas also climbed, adding further strain to household budgets already stretched by everyday expenses.
Higher transport costs were among the biggest contributors to inflation during the month, reflecting the pass-through effect of rising fuel prices. As transport becomes more expensive, businesses are increasingly passing on higher logistics costs to consumers, raising the prices of goods and services across the economy.
According to UBOS, annual core inflation, which excludes volatile food crops, electricity, fuel and metered water, also rose to 3.4% in June, from 3.0% in May, signalling broader price pressures beyond energy-related products.
The inflation report indicates that prices increased for passenger transport services, education, rice, beef, live chicken, fish and other seafood, underscoring the widening impact of higher operating costs on consumers.
However, there was some relief for shoppers as prices slowed for several staple food items, including matooke, beans, onions and carrots, helping to cushion the overall rise in food inflation.
Regionally, Kampala’s high-income areas recorded the highest annual inflation, while Arua registered the lowest, pointing to differing spending patterns and cost pressures across the country.
Despite the June increase, Uganda’s inflation remains relatively moderate on an annual fiscal year basis. Headline inflation averaged 3.3% in the 2025/26 financial year, slightly lower than the 3.5% recorded in FY2024/25, while average core inflation eased to 3.4% from 3.9% over the same period.
UBOS Principal Statistician Juliet Nakayenga said the latest figures demonstrate that rising fuel prices are increasingly filtering through to household spending, making transport and other essential services more expensive for Ugandan consumers.