July 22, 2024

Rise in education service fees pushes up inflation 

The rise in education service charges, including tuition, scholastic materials, and uniforms, contributed to an increase in inflation, resulting in higher expenditures for most Ugandans in February compared to January.

Additionally, the overall inflation uptick was influenced by increased inflation in restaurant and accommodation services, alongside rising food prices. According to recent data, headline inflation climbed to 3.4 percent in February from 2.8 percent, while core inflation also saw an increase to 3.4 percent from 2.4 percent.

During the release of the Consumer Price Index for February, Ms. Aliziki K. Lubega, the director of macroeconomic statistics at the Uganda Bureau of Statistics (UBOS), attributed the surge in education services inflation to the higher costs associated with the new school term, including tuition fees and necessary school supplies.

The increase in services inflation was particularly pronounced in education services, which rose to 14.5 percent in February from 6.1 percent. Similarly, inflation in restaurant and accommodation services increased to 6 percent from 4.9 percent.

Other areas that experienced inflationary pressures included transport, with inflation rising from 1.8 percent to 2.5 percent, and prices of various goods such as beef and maize flour registering notable increases.

In terms of regional inflation, Fort Portal recorded the highest inflation rate of 5.4 percent, followed by Kampala High Income at 4.4 percent. Conversely, Gulu, Kampala Middle Income, and Mbale registered relatively lower price increases.

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