Monday, 31 October 2011 10:27

Uganda October Inflation Hits 30.5% Featured

By  Reuters
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Uganda's consumer price index rose 1.3 percent in October from September, pushing the headline inflation rate to 30.5 percent, the highest level since January 1993, data showed on Monday.

The increase in the headline year-on-year inflation rate in east Africa's third biggest economy from 28.3 percent in September comes a day ahead of the Ugandan central bank's interest rate setting decision for November.

The core rate of inflation - which excludes food crops, fuel, electricity and metered water -- also rose to hit 30.8 percent in October. The central bank is targeting 5 percent core inflation in the medium term.

The biggest month-on-month increases in October were for the cost clothing and footwear, which were up 5.8 percent, and rent, fuel and utilities, up 4.6 percent.

The cost of food, which has been one of the main drivers behind the inflation surge in Uganda was unchanged from a month earlier, while the year-on-year rate of food inflation slowed to 45.8 percent from 50.4 percent in September.

At its previous meeting in October, the central bank raised its benchmark lending rate by four percentage points to 20 percent, the third increase since the rate was launched in July at 13 percent.

Last modified on Monday, 31 October 2011 12:53
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