Uganda’s Inflation Slowed to 13.3% in October (Update1)

    Oct. 30 (Bloomberg) -- Uganda’s annual inflation rate declined to 13.3 percent in October after the prices of some foods fell, the Uganda Bureau of Statistics said.

Inflation decelerated from a revised 14.6 percent in September, the Kampala-based bureau said in a report handed to reporters in the city today.

“During the month, food prices reduced by 1.1 percent due to significant reduction in prices of most vegetables and milk,” it said. “The decrease in food prices is mainly attributed to increased supplies to the markets due to current rainy conditions in most parts of the country.”

Food accounted for 26.5 percent of the basket compared with 30.3 percent in September, the statistics office said. Gasoline, diesel, firewood and transport costs rose in the month, while charcoal, soap, cement and paint prices dropped, it said.

The underlying inflation rate, which excludes food, fuel, electricity and water costs, fell to 9.1 percent from 9.7 percent in September, the agency said.

Uganda, with a population of 31.9 million people and a $16.6 billion economy, is the second-biggest coffee grower in Africa, after Ethiopia.

To contact the reporter on this story: Fred Ojambo in Kampala at fojambo@bloomberg.net.

To contact the editor responsible for this story: Paul Richardson at pmrichardson@bloomberg.net.