Uganda inflation climbs to 5.8%, three-year high, as shilling slump bites

Uganda’s inflation rate rose to a three-year high of 5.8% in October, up from 4.6% a month earlier, the country’s statistics office said on Friday. The increase followed a sharp slump in the Ugandan shilling and higher oil and food prices.

The October reading was the fastest pace of inflation since June 2023, when energy prices were still easing after the spike linked to the COVID-19 pandemic and Russia’s invasion of Ukraine.

Shilling slide feeds price pressures

The shilling is down almost 15% against the dollar since June. It traded at around 4,245 per dollar on Friday, compared with 3,614.50 at the end of 2025.

The currency weakness has raised the cost of imported goods and added to pressure on local prices. The statistics office attributed much of October’s inflation rise to food.

Food inflation jumps

Food inflation jumped to 10.7% in October from 4.5% in September. That sharp increase accounted for a large part of the overall rise in the consumer price index.

The inflation figures were released in Kampala on Friday, October 30.

Central bank tightens policy

The shilling’s sharp fall prompted an emergency interest rate hike from Uganda’s central bank earlier this month, as it moved to stem soaring local demand for dollars.

The central bank raised its policy rate to 12% from 9.75%. It said the hike was needed to curb rising inflation pressures. It also raised banks’ reserves ratio to provide additional support. Local traders say the central bank has also intervened in the foreign exchange market.

Uganda’s inflation is now at its highest in three years, with food and currency pressures at the centre of the increase.