Uganda's Annual Inflation Rises To 3.7% In June: Kampala Records Highest Inflation as Transport and Education Costs Surge. Rising Fuel Price Continue to Drive Household Expenses – UBOS.
Uganda's annual headline inflation rose to 3.7 percent in June, up from 3.2 percent in May, according to the latest Consumer Price Index released by the Uganda Bureau of Statistics. UBOS attributes the increase to higher transport, fuel, education, and household commodity costs following the reopening of schools, although easing food prices helped keep inflation relatively stable.
Uganda's annual headline inflation increased to 3.7 percent in June 2026, from 3.2 percent recorded in May, according to the latest Consumer Price Index released by the Uganda Bureau of Statistics.
The report indicates that the increase was largely driven by higher core inflation, reflecting rising prices of goods and services excluding food crops, fuel, and electricity, alongside increases in energy, fuel, and utility costs.
According to UBOS, the reopening of schools during the month significantly increased household spending on education-related services, while the prices of several commonly consumed commodities also rose.
Items including rice, meat, fresh fish, laundry soap, and other household essentials registered notable price increases, contributing to higher consumer expenditure.
The report also shows that fuel prices continued to exert pressure on household budgets and transport costs.
Petrol prices increased by 31.7 percent, while diesel prices rose by 37.3 percent compared to the same period last year, reflecting the impact of global oil market movements and higher transportation costs across the economy.
Regionally, Kampala recorded the highest annual inflation rate at 4.7 percent, largely driven by increased transport fares, education expenses, and housing-related costs.
Masaka followed at 4.1 percent, while Arua registered the lowest annual inflation at 2.2 percent, mainly due to slower increases in accommodation costs and relatively stable food prices.
Despite the overall rise in inflation, UBOS reported continued declines in the prices of several staple food items, including matooke, onions, dry beans, and Irish potatoes, helping to cushion households from steeper increases in the cost of living.
The agency says lower food inflation has remained an important factor in keeping overall inflation within the government's medium-term target range.
While Uganda's inflation remains moderate by regional standards, the latest figures highlight the growing impact of transport, fuel, and education costs on household budgets. Economists say maintaining stable food prices, improving fuel market efficiency, and sustaining prudent monetary policy will be key to keeping inflation under control in the months ahead.
