Food shortage drives up inflation in Uganda

Uganda’s inflation
rate rose for a third consecutive month to 5.0 per cent in January from
3.1 per cent in December due to seasonal food shortages, the
government’s statistics agency said on Monday.

Food prices rose
3.6 per cent in the year to January 2011 compared with a decrease of
1.1 per cent recorded for the year to the end of December 2010, the
Uganda Bureau of Statistics (UBOS) said.

“During the month,
the food prices index increased by 3.4 per cent due to increases in
prices of matoke (green bananas), sweet potatoes, oranges, sweet
bananas, cabbage, green pepper, bbugga (leafy vegetable), onion, maize
flour…,” UBOS said.

“The increase in prices of these food items is primarily attributed to low supply to the market,” it added.

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