Uganda Inflation Climbs Slightly to 3.2% in January on Higher Service Charges

Uganda’s annual inflation rate rose marginally to 3.2% in January 2026, up from 3.1% in December, largely due to increasing costs of services, according to the latest figures from the Uganda Bureau of Statistics (UBOS).

The rise shows that prices in January were generally higher than in the same month last year, UBOS Principal Statistician for Price Statistics, Juliet Nakayenga, said.

“Overall prices in January 2026 were 3.2% higher compared to January 2025,” Nakayenga explained.

Core inflation—which excludes food crops and energy, fuel and utilities—also increased to 3.3% in January from 3.1% the previous month. This pointed to slightly stronger underlying price pressures in the economy.

Services were the main driver of the increase, with annual services inflation rising to 4.8% from 4.0% in December. In contrast, inflation for core goods eased to 2.1% from 2.5%, suggesting slower price growth for manufactured and processed household products.

“Prices are still going up, but the pace of increase has slowed,” Nakayenga noted.

Within the services sector, passenger road transport prices showed no change in January, improving from a 3.8% decline recorded in December. Refuse collection costs, however, went up sharply after service providers adjusted their charges following changes in dumping sites.

Some core goods recorded price reductions during the month. Sugar prices declined by 1.2% compared to a year earlier, reversing a 3.1% increase seen in December, while laundry soap prices fell by 2.2%.

“When prices turn negative, it means consumers are paying less than they did in the same month last year,” Nakayenga said.

Food crop inflation continued to slow, easing to 3.0% in January from 4.4% in December. This was mainly attributed to a drop in matoke prices, which fell by 4.5% due to improved seasonal supply.

“When supply rises while demand remains unchanged, prices tend to fall,” Nakayenga explained.

Tomato prices dropped sharply by 10.1%, while price increases for sweet potatoes, dry beans and Irish potatoes also moderated.

Meanwhile, inflation for energy, fuel and utilities rose slightly to 1.7% in January from 1.4% in December. Electricity prices continued to fall, although at a slower rate, while firewood prices increased to 6.9% from 4.9%.

Overall, Nakayenga said the data shows a mild rise in both headline and core inflation, easing food prices and a slight increase in energy-related costs.

Uganda’s inflation rate has remained largely stable in recent months, staying at 3.1% in November and December before the small increase recorded in January.