Uganda’s inflation accelerated in October to the highest level in more than three years after food costs rose, the Uganda Bureau of Statistics said.
Inflation in East Africa’s third-biggest economy quickened to 8.8 percent, from 7.2 percent in September, Chris Mukiza, director of macroeconomics statistics at the bureau, told reporters in the capital, Kampala. This is the highest level since the 11.9 percent rate in August 2012, according to the agency.
“The main driver was food-crops inflation,” he said. “There is a shortage of supplies in the market.”
Food inflation in October climbed to 20.2 percent, from an increase of 10.2 percent in September, after prices of staples including bananas, Irish potatoes and maize flour rose, he said. Food accounts for slightly more than a quarter of Uganda’s consumer price index.
Core inflation, which strips out food costs, slowed to 6.3 percent from 6.7 percent in September, the bureau said.
The nation’s central bank this month raised its benchmark interest rate by one percentage point to 17 percent after inflation climbed to the highest level in two years.