But, according to the research, it will continue over the Bank of Uganda’s objective for the rest of this year and into next. “We expect inflation to moderate to 5.5 [percent] in 2024,” the report reads in part. Nonetheless, it is noted that upside risks remain high, owing to unfavorable weather conditions and protracted commodity price shocks.
According to Fitch Ratings, inflation is expected to stay over the Bank of Uganda’s 5% objective through 2023. The study which covers a range of economic indicators, also showed that inflation has been lowering since December, falling to 9.2 percent in February from 10.7% in October.
The gradual rise in the price of goods and services has been caused by a restrictive monetary stance, with the Central Bank maintaining a high Central Bank Rate of 10% since August, despite significant domestic and international vulnerabilities.
