UBOS explains CPI basket, warns on data gaps as business stakeholders demand clarity

By Evans Najuna

KAMPALA — The Uganda Bureau of Statistics (UBOS) has explained how it determines the Consumer Price Index (CPI) basket, saying the selection of goods and services is guided by household consumption patterns, expenditure weights and international statistical standards.

The bureau also raised concerns about data gaps caused by some regulators and institutions failing to provide the information needed to produce comprehensive official statistics.

The revelations were made on Thursday, October 15, 2026, during the Statistical Literacy and Advocacy Workshop for Business Stakeholders, held under the theme “Using Price Statistics for Evidence-Based Decision Making and Economic Planning.”

The workshop forms part of UBOS’s broader efforts to ensure that official statistics are not only produced and disseminated but also understood, trusted and used by different categories of data users.

Speaking at the engagement, Aliziki Kaudha, UBOS Director of Economic Statistics, explained that the bureau considers the relevance of different goods and services to the national economy when compiling price statistics.

She said the CPI basket is designed to reflect the general consumption patterns of households across the country, with the weight assigned to each item depending on its importance in household expenditure.

Kaudha explained that the bureau follows internationally recognised classifications when assessing economic activities and determining which products and services should be captured in its statistical measurements.

She noted that where an activity or product is not adequately covered in existing findings, UBOS examines international classifications and how other countries handle similar statistical categories.

On the inclusion of services such as tourism, Kaudha explained that UBOS focuses on economic activities taking place within Uganda because they contribute to the domestic economy.

She gave the example of foreign visitors spending money in Uganda, noting that such expenditure contributes to the country’s economic activity and is therefore relevant to statistical measurement.

However, she acknowledged that some activities, including sports betting, may not have sufficient consumption weight to warrant significant representation in the CPI basket.

Kaudha also highlighted challenges in obtaining information from regulators and other institutions, warning that failure to provide the necessary data can affect the completeness of official statistics.

SUPERMARKET PRICES UNDER SPOTLIGHT

Meanwhile, Juliet Nakayenga, UBOS Head of the Consumer Price Index, said the bureau regularly reviews its CPI basket to reflect changing consumption and expenditure patterns.

Nakayenga explained that the review process follows international standards and takes into account changes in how people spend their money over time.

She noted that the bureau normally reviews the basket every five years and is approaching the end of the current cycle, with preparations for a new process expected to begin.

Nakayenga also addressed concerns about supermarket prices, describing them as particularly challenging to monitor because some operators may maintain the same displayed prices while reducing the quantity or quality of products.

She said UBOS has trained statisticians who collect price data to ensure that the information used in compiling the indices accurately reflects market developments.

Unlike supermarkets, where displayed prices are generally fixed, restaurants present different challenges because prices may vary depending on the services offered and the items ordered.

UBOS therefore collects information from different establishments rather than relying on a single outlet to establish prevailing prices.

INFLATION AFFECTS BUDGETING

Representing the Ministry of Finance, Musa Nsamba emphasised the importance of inflation statistics in economic planning and government budgeting.

He noted that high inflation increases the cost of purchasing commodities, putting pressure on employees and households whose incomes may not rise at the same pace as prices.

Nsamba said it was important for inflation trends to be adequately considered during the preparation of national budgets to ensure that economic realities are reflected in planning decisions.

BOU SAYS CPI HELPS SHAPE FUTURE POLICY

Patrick Kimera, representing the Bank of Uganda (BoU), described the Consumer Price Index as an important indicator of economic developments that helps policymakers assess past performance while making decisions that influence future conditions.

He observed that once economic outcomes have occurred, they cannot be reversed, but the information generated can guide measures aimed at improving future performance.

Kimera said the central bank works with different stakeholders, including UBOS, the Ministry of Finance and international institutions, when developing its economic policy models.

He explained that international comparisons, particularly between Uganda’s interest rates and those in the United States, are important in assessing economic conditions and informing monetary policy decisions.

Kimera added that monetary policy decisions, including the setting of the Central Bank Rate (CBR), are informed by broader economic assessments and stakeholder engagement.

UBOS SEEKS TO REDUCE QUESTIONNAIRE FATIGUE

In her concluding remarks, Kaudha called for greater coordination among government agencies collecting information from businesses, saying multiple questionnaires can place an unnecessary burden on respondents.

She explained that some companies engage in several economic activities, including importing, exporting and domestic production, meaning UBOS may need different sets of information to accurately measure each activity.

According to Kaudha, the questionnaires may also be administered at different times because some statistics require immediate monthly price information, while others focus on production, construction costs and business expenditure.

She said UBOS is working to minimise the burden by delivering multiple questionnaires to the same entity together wherever possible.

Kaudha further urged other government agencies to consider using relevant information already published by UBOS instead of repeatedly approaching the same businesses for similar data.

She clarified that while other institutions may collect administrative information for their own purposes, UBOS collects and analyses data to produce statistics that represent the entire country.

The bureau, she said, remains committed to improving its data collection processes while appealing to businesses and other respondents to cooperate with its statistical exercises.

The workshop brought together officials from UBOS, the Ministry of Finance, the Bank of Uganda and business stakeholders to discuss the importance of price statistics in guiding economic decisions, public policy and business planning.