By Our Reporter
NATIONAL
Uganda Bureau of Statistics has revealed that both Headline and Core Inflation rates have increased as indicated by statistics at end of May, 2024.
In a statement issued today, 31st May, 2024, UBOS says the Annual Headline Inflation as measured by the Consumer Price Index for the year ending May 2024 increased to 3.6% from the 3.2% recorded in April 2024.
The Annual Core Inflation also increased to 3.7% in May 2024 compared to 3.5% recorded in April 2024
The key drivers of the inflation are Services prices that rose from 5.4% in April to 6.2% by close of May, 2024. Meanwhile other goods and services saw a drop in Annual inflation from 2.0% in April to 1.8% in May.
Core inflation is the change in the costs of goods and services, but it does not include those from the food and energy sectors. This measure of inflation excludes these items because their prices are much more volatile.
Headline inflation is the total inflation in an economy. The headline inflation figure includes inflation in a basket of goods that includes commodities like food and energy. It is different from core inflation, which excludes food and energy prices while calculating inflation.
According to the World Bank, Inflation is a percentage change in the cost to the average consumer of acquiring a basket of goods and services that may be fixed or changed at specified intervals, such as yearly or monthly.
An increase in inflation means a consumer pays more for the same basket of goods or services.
