Key facts
- Uganda's inflation rate reached 5.8% in October.
- Food inflation surged to 10.7% in October.
- The Ugandan shilling has depreciated by almost 15% against the dollar since June.
Uganda's annual inflation rate accelerated to 5.8% in October, the highest in three years, according to the country's statistics office. This surge follows a significant depreciation of the Ugandan shilling against the US dollar and increased prices for oil and food. Food inflation, in particular, more than doubled to 10.7% in October from 4.5% in September. In response to the weakening currency and rising inflation, Uganda's central bank increased its policy rate to 12% from 9.75% earlier this month and also raised banks' reserve ratios.