Fuel hikes threaten Central bank inflation target
Uganda is facing rising inflation, reaching 3.7% in June 2026, largely driven by fuel price spikes caused by supply disruptions in the Middle East. These costs have significantly increased transport fares and the price of essential goods like beef and rice.
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Kampala, Uganda | URN | Fuel prices continue to oscillate between 6,300 shilling (1.68 dollars) and 6,700 shillings per litre for both petrol and diesel, contributing most to the high average prices of goods and services in the second quarter of 2026.
According to the Uganda Bureau of Statistics (UBOS), at the end of June 2026, the average price of goods and services has risen by 3.7 percent over the previous 12 months, continuing the trend that started in March. I’m that month, inflation was recorded at 2.9 percent, up from 2.8% in February.
It has since been rising, meaning that the pace of increase in the average prices was every subsequent month. It hit 3 percent in April, and rose to 3.2 percent in May before peaking at 3.7 last month.
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