The Independent Uganda: You get the Truth we Pay the Price
Kampala, Uganda | THE INDEPENDENT | The recent changes in electricity prices have had an immediate impact on the country’s energy sector inflation, as increased pressure is registered in other sectors. According to new figures from the Uganda Bureau of Statistics (UBOS), Uganda’s headline inflation in April 2025 nudged up to 3.5% from 3.4% in March.
Whereas this moderate uptick reflects broader increases in core consumer prices, particularly for services and other goods, the dynamics within the energy sector reveal otherwise.
UBOS numbers show that Electricity prices dampened the overall inflation of the Energy, Fuel, and Utilities (EFU) category, which recorded a flat 0.0% annual change in April compared to 0.4% in March. “A major contributor to this deceleration was a 5.7% year-on-year drop in electricity charges in April, a deeper cut than the 2.0% reduction recorded in March,” the report states.
However, this nationwide average masks underlying volatility in household energy costs and raises important questions about affordability, supply reliability, and policy direction.
Samuel Echoku, the UBOS head of macro statistics, says the drop in electricity tariffs is likely as a result of a combination of factors, including government subsidies, regulatory adjustments by the Electricity Regulatory Authority (ERA), and possibly lower generation or transmission costs passed on to consumers. “As we had a change from Umeme to UEDCL, there was an immediate change in tariffs, and this can not be ruled out.” He noted.
While this helped prevent a more significant rise in headline inflation, its modest trend suggests a slow build-up of underlying pressures in other sectors that are less influenced by volatile food and fuel prices, and as long as these figures remain within a manageable range, they point to potential tightening for household budgets.
The main contributor to according to the UBOS report, the uptick was due to core inflation, which climbed to 3.9% in April from 3.8% in March. Core inflation excludes food, energy, and fuel prices, indicating a persistent cost trend in the broader economy. One of the most notable jumps was in the “other goods” category, ranging from personal care products to cleaning supplies, which saw annual inflation rise to 5.2% from 4.5% in March. Services inflation also edged up to 2.8%, suggesting mounting pressure in sectors like education, healthcare, transport, and hospitality.
Food and beverage services, in particular, saw a pronounced spike, with inflation increasing to 4.5% in April from 3.7% a month earlier. Annual food and non-alcoholic beverage inflation stood at 4.8% in April, slightly down from 5.3% in March. Within this category, “food crops and related items” inflation eased to 5.6%, down from 8.6%, largely due to a reduction in the rate of increase for vegetables, fruits, and staples like bananas.
Despite the moderation, prices remain elevated for several food items. For instance, fresh cassava inflation rose to 21.6% in April, and pineapple prices climbed 8.5%. On the other hand, tomatoes and fresh beans saw price declines, affecting the overall food index.
The report also revealed that the inflationary pressure varies widely across the country. Masaka posted the highest annual inflation rate in April at 5.0%, up from 4.1% in March. “The jump was driven mainly by steep increases in housing and utilities (8.6% in April, up from 6.1%) and food prices,” it stated. In contrast, Mbale recorded the lowest inflation at 1.7%, due to its acute fall in food prices. Kampala High Income and Jinja regions hovered close to the national average at 3.6% and 3.5%, respectively.
The April inflation data signals a cautious return of price pressure, particularly in essential services and everyday goods. While energy and food prices offered some relief, core inflation’s steady rise highlights the need for vigilance among policymakers and households alike.
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