April 15, 2008

High Commodity Prices Cause Panic

By Arthur Oyako, East African Business Week (Kampala)

A mini survey carried out by East African Business Week last week confirmed reports that the prices of foodstuffs and essential commodities had shot up in the range of 25% and 55%.

The Uganda National Bureau of Statistics (UBOS) also confirmed the increases in its quarterly report for the fourth quarter of 2007. The bureau said headline inflation had gone up from 6.5% in January to 7.5% in February and now stands at over 8%.

The highest increases have been in basic food stuffs and daily household requirements ranging from soaps to soft drinks. A bar of soap which was until recently UShs800 (about $0.47) has shot up to UShs 1,700 (about $1).Vegetable foods are among the only food items whose prices have not changed, at least according to market vendors in Nakawa market in Kampala.