Uganda's Inflation Hits 3-Year High of 5.8% After Shilling Slump

Uganda's inflation rose to a three-year high in October following a sharp slump in the shilling and a jump in oil and food prices, the statistics office said on Friday.

Year-on-year inflation rose to 5.8% in October from 4.6% in September, marking the fastest pace since June 2023 when energy prices spiked following the COVID-19 pandemic and Russia's invasion of Ukraine.

The rise was driven largely by a steep surge in food inflation, which jumped to 10.7% in October from 4.5% in September.

The shilling has fallen almost 15% against the dollar since June, trading at around 4,245 per dollar on Friday compared to 3,614.50 at the end of 2025.

The currency's sharp fall prompted an emergency rate hike by Uganda's central bank earlier this month to stem soaring local demand for dollars.

The bank raised its policy rate to 12% from 9.75% and increased banks' reserve ratio, while traders said it has also intervened in the foreign exchange market to support the shilling.