By Our Reporter
Bank of Uganda (BOU) predicts the country could see inflation rise up to 10% in the next 6 months. According to the Bank’s head of research Adam Mugume, external sources of inflation are likely to stay generally benign given the weak global demand conditions.
Speaking today at the release of the Monetary Policy statement at the bank’s offices in Kampala, Mugume said, “On the domestic front, the exchange rate depreciation experienced over the last 12 months is yet to feed through completely to prices and will therefore continue to put upward pressure on inflation. In addition, the projected El Nino weather conditions could result in higher food crop prices in the last quarter of 2015 and the 1st quarter of 2016 further heightening inflationary pressures.
