Uganda’s annual headline inflation remained unchanged at 3.0% for the 12 months ending May 2026, keeping price growth comfortably below the central bank’s medium-term target of 5%.
The Uganda Bureau of Statistics (UBOS) released the data on Friday, confirming that consumer price pressures are maintaining the exact same momentum recorded in the year ended April 2026.
This consumer price index print matches the 3.0% figure from April, which had risen slightly from the more than two-year low of 2.8% reported back in March.
The continued price stability validates the Bank of Uganda’s recent decision to maintain its benchmark Central Bank Rate at 9.75% to anchor inflation expectations while supporting economic expansion.
Central bank officials remain cautious, however, noting that the domestic outlook faces persistent external pressure from volatile global commodity markets and geopolitical disruptions.
“The balance of risks to inflation remains tilted to the upside,” Bank of Uganda Governor Michael Atingi-Ego stated regarding the macroeconomic environment.
Atingi-Ego warned that prolonged conflict in the Middle East, potential domestic currency depreciation, or adverse weather conditions could eventually drive local prices higher.
To proactively manage banking system liquidity ahead of these headwinds, the monetary policy committee previously raised the Cash Reserve Requirement to 11% from 9.5%.
Despite these underlying risks, policymakers expect real economic growth to reach up to 7.0 percent this fiscal year, driven by strong industrial activity and oil-related investments.
