TIGHTEN YOUR BELT! Uganda’s inflation climbs to 3.2% in May as transport and fuel prices rise – UBOS

By Evans Najuna 

Kampala – Uganda’s annual headline inflation rose to 3.2 percent in the 12 months to May 2026, up from 3.0 percent recorded in April, driven mainly by rising transport costs and increasing fuel prices, according to the latest Consumer Price Index (CPI) report released by the Uganda Bureau of Statistics (UBOS).

The report indicates that annual services inflation increased to 4.6 percent in May from 4.1 percent the previous month. This was largely attributed to a sharp rise in passenger road transport costs, whose inflation surged to 10.6 percent in May compared to 2.2 percent in April.

Fuel prices also continued to exert pressure on the cost of living. Annual liquid energy fuels inflation rose significantly to 16.6 percent in May from 7.7 percent in April, resulting in an increase in Energy, Fuel and Utilities (EFU) inflation to 9.1 percent from 6.1 percent.

According to UBOS, petrol prices increased by 16.6 percent during the period under review, compared to 8.7 percent in April. Diesel prices registered an annual increase of 21.5 percent, while kerosene prices rose by 25.4 percent. Cooking gas prices also increased by 1.1 percent after recording a slight decline in April.

Despite the rise in services and fuel-related costs, some essential commodities registered slower price increases, helping to moderate overall inflation.

Annual core goods inflation declined to 1.7 percent in May from 2.0 percent in April, largely due to easing prices of staple foods such as maize flour, rice and sugar. Sugar prices, in particular, continued to fall, registering negative inflation of 5.8 percent.

Similarly, annual inflation for food crops and related items slowed to 0.2 percent from 0.6 percent in April. The decline was driven by lower prices for matooke, sweet potatoes, fresh beans and dry beans, reflecting improved food supplies in many parts of the country.

Using the Classification of Individual Consumption According to Purpose (COICOP), UBOS identified transport as the biggest contributor to inflation, with transport inflation rising to 6.7 percent in May from 3.6 percent in April.

Other sectors that recorded notable increases included Housing, Water, Electricity, Gas and Other Fuels, which rose to 4.5 percent from 3.8 percent, while Alcoholic Beverages, Tobacco and Narcotics inflation increased to 0.9 percent from 0.4 percent.

Inflation also rose slightly in Furnishings and Household Equipment, Personal Care and Miscellaneous Goods and Services, while Education Services inflation remained unchanged at 4.1 percent.

On the other hand, inflation slowed in several sectors, including Food and Non-Alcoholic Beverages, Restaurants and Accommodation Services, Recreation, Sport and Culture, Clothing and Footwear, Health, and Information and Communication.