Inflation in Uganda accelerates to 5.8% in October — The Rio Times

Annual inflation in Uganda accelerated to 5.8% in October 2026, compared with 4.6% in September. This is the highest reading since June 2023, The Rio Times reports, citing the Uganda Bureau of Statistics.

Food and fuel prices are rising

Prices for food crops rose by 10.7% year-on-year, while their annual increase in September was 4.5%. Core inflation, which excludes volatile components such as raw food and fuel, increased from 3.7% to 4.4%.

Samuel Echoku, head of the macroeconomic statistics division at UBOS, cited the depreciation of the Ugandan shilling and higher fuel prices among the factors behind accelerating inflation. Uganda's central bank also said that a weaker shilling had already raised fuel prices and that price pressures had begun to extend beyond the food sector.

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Rate raised to 12%

On October 14, the Bank of Uganda raised its key rate by 2.25 percentage points, from 9.75% to 12%, at an extraordinary meeting. The regulator forecasts that average headline inflation over the next 12 months will be 7–7.5%, while core inflation will be 5.5–6%.

The central bank linked pressure on the currency and prices to higher oil and sea freight costs amid the escalation of the conflict in the Middle East. The bank also reported that Uganda's current account deficit increased by $1.4 billion to $4.6 billion. The economic growth forecast for the 2026/27 fiscal year was lowered to 6–6.5% from 7–7.5%.