Uganda’s annual inflation remained stable at 3.1% in the year ending December 2025, according to the latest Consumer Price Index (CPI) report released by the Uganda Bureau of Statistics (UBOS).
While the overall inflation rate held steady, the report shows notable price movements across food, energy and services, pointing to mixed cost pressures as the year closed.
Food crop prices were a key driver of inflation during the month. Annual inflation for food crops and related items rose to 4.4% in December, up from 4.0% in November.
Several food items registered sharp price increases, largely due to seasonal factors and supply constraints.
According to UBOS, the rise in vegetable and fruit prices reflects seasonal changes and limited supply, while staples such as Irish potatoes and cassava recorded steady price increases due to sustained demand in urban areas.
Energy, Fuel and Utilities (EFU) inflation also increased during the period. Annual EFU inflation rose to 1.4% in December from 0.6% in November.
This was driven by higher prices for key household energy sources including firewood and charcoal.
UBOS noted that higher prices for firewood and charcoal reflect increased household demand during the festive season, while the modest rise in petrol prices contributed to higher transport costs.
Meanwhile, annual underlying inflation, which excludes food crops and energy prices, edged down slightly to 3.1% in December from 3.2% in November, indicating relatively stable price pressures.
Within this category, inflation for services declined to 4% from 4.2%, while prices of manufactured and household goods rose slightly to 2.5% from 2.4%.
Some food-related household goods recorded price increases, signalling a gradual recovery after earlier declines.
On a monthly basis, headline inflation increased by 0.5% in December, reversing a 0.1% decline in November.
Monthly food crop inflation rose by 0.3% after a 0.9% drop, driven by sharp increases in cabbage, passion fruits, avocado and green pepper.
EFU inflation rose by 0.4%, mainly due to higher firewood prices and increased water charges. Prices of household goods rose by 0.3%, while services increased by 0.7%, reflecting a steady recovery in consumer spending.
The report also highlights regional and income-based differences. Kampala’s high-income areas recorded the highest annual inflation at 4.2%, driven by rising costs in recreation, culture, sport and health services.
Masaka followed at 3.7%, largely due to higher prices in restaurants, accommodation and health services. Mbale registered the lowest annual inflation at 1.0%, reflecting falling prices in clothing and household equipment.
UBOS says the stable headline inflation reflects a balance between rising food and energy costs and relatively steady prices for other goods and services.
While overall inflation remains moderate, the report points to growing pressure on essential food items and household energy, underscoring the need for continued monitoring by policymakers, businesses and households.
