Uganda’s annual headline inflation slowed to 3.8% in July 2025 from 3.9% in June, according to the latest figures released by the Uganda Bureau of Statistics (UBOS), signaling a marginal ease in consumer price pressure.
Speaking during the release of the Consumer Price Index (CPI) report, Samuel Echoku, Principal Statistician at UBOS, noted that the drop in inflation was driven by a decrease in prices for key food items such as tomatoes, beans, matooke, Irish potatoes, and fresh leafy vegetables.
Conversely, some staple items including sugar, fish, and posho recorded notable annual price increases. The core inflation, which excludes food crops, fuel, and metered water, also dipped slightly to 4.1% in July from 4.2% in June.
On a monthly basis, headline inflation was recorded at -0.1% for July, indicating a slight general decline in prices compared to June. Monthly core inflation, however, stood at 0.2%, reflecting ongoing cost pressures in select consumer segments.
Echoku noted that prices in the Energy, Fuel, and Utilities category presented a mixed picture. While electricity and liquid energy fuel prices fell, charges for charcoal and water saw an uptick.
Regional disparities in inflation rates were also observed. Masaka posted the highest annual inflation at 5.1%, though slightly down from 5.4% the previous month. Kampala High Income households saw inflation rise to 4.9% from 4.8%, while Mbale registered the lowest at just 0.2%, down from 0.7%.
Meanwhile, construction sector inflation, which tracks input prices in building and civil works, posted a slight increase. According to Irene Musiitwa Namuganda, Senior Statistician at UBOS, the Construction Sector Inflation rose by 0.1% in June 2025, following a flat rate in May. On an annual basis, the sector registered a 0.6% increase, up from 0.5% in May.
“The cost of key construction materials such as sand, clay bricks, tiles, sheet steel, and roofing sheets rose over the past year,” Musiitwa stated. “However, prices for materials such as aggregates, hardcore, iron, steel, and plywood declined.”
Monthly construction input price trends showed increases in products like paint, vanishes, plastic pipes, and insulated electric cables. At the same time, reductions were noted in aggregates, hardcore stones, adhesives, grout, and other finishing materials.
The construction index serves as a crucial indicator of activity and cost pressure in Uganda’s real estate and infrastructure development sectors.
As the country moves into the final quarter of the financial year, policymakers and investors are expected to watch both inflation and construction trends closely amid ongoing global economic uncertainties and domestic supply chain fluctuations.