Uganda’s inflation landscape showed a modest easing in February 2026, with the annual Consumer Price Index (CPI) registering 2.9 percent, down from 3.2 percent in January.
While headline inflation slowed, the data reveals a complex mix of factors influencing the cost of living, highlighting significant shifts across goods, services, and energy prices.
Core inflation, which excludes volatile food and energy items, fell to 3.0 percent from 3.3 percent in January, reflecting a general moderation in the prices of services. Annual services inflation dropped to 4.1 percent from 4.8 percent, largely due to a sharp decline in passenger air transport costs, which fell from 8.8 percent to 0.5 percent, and a slowdown in health services inflation from 3.8 percent to 2.8 percent.
Education services also saw a notable decline, registering 4.1 percent compared to 7.6 percent the previous month. Core goods inflation remained steady at 2.1 percent, though individual commodities experienced divergent trends. Prices for dried fish, maize flour, bread, and refined oil all increased at higher rates than in January, suggesting persistent pressures in certain food categories.
Food crops and related items inflation fell sharply to 1.8 percent from 3.0 percent, largely driven by falling prices of tomatoes, dry beans, fresh leaf vegetables, and green pepper. Passion fruits moderated as well, rising 7.7 percent compared to 11.2 percent previously.
The Energy, Fuel, and Utilities (EFU) sector, however, bucked the overall downward trend, with inflation rising to 2.7 percent from 1.7 percent. Liquid fuels such as petrol and diesel became more expensive, and solid fuels including charcoal and firewood also saw accelerated price increases.
Regional disparities were pronounced. Masaka recorded the highest annual inflation at 3.8 percent, propelled by rising food prices and personal care goods, while Kampala’s high-income areas experienced 3.5 percent inflation due to surging housing, utility, and restaurant costs. Arua Centre recorded the lowest at 1.1 percent, with declining food and beverage prices and falling costs of alcoholic beverages.
Examining Uganda’s CPI through the COICOP lens highlights the sectors driving these shifts. Food and non-alcoholic beverages, housing, utilities, and education services remained key contributors. Insurance and financial services maintained a high inflation rate of 12.3 percent, unchanged from January, indicating sustained pressures in that segment.
Overall, the February CPI data reflects a cautiously optimistic moderation in general inflation but highlights ongoing volatility in energy, selected food commodities, and services, signaling areas that could influence household budgets in the coming months.