Government, through the Uganda Bureau of Statistics (UBOS) has released the latest Consumer Price Index, showing that annual headline inflation increased to 3.2 per cent in May 2026, up from 3.0 per cent recorded in April.

The latest figures point to growing pressure on the cost of living as prices continue to rise across key sectors of the economy.

Ugandans are increasingly feeling the impact of rising living costs after UBOS reported an increase in annual services inflation from 4.1 per cent in April to 4.6 per cent in May 2026.

The latest Consumer Price Index indicates growing price pressures across the services sector, contributing to the rise in overall annual inflation from 3.0 per cent to 3.2 per cent during the same period.

The increase comes amid continued volatility in global fuel prices, largely driven by the ongoing conflict in Iran.

According to UBOS, annual energy, fuel, and utilities inflation rose sharply from 6.1 per cent in April to 9.1 per cent in May 2026, signalling mounting costs for both households and businesses.

Fuel prices registered some of the steepest increases during the period under review.

Petrol inflation jumped from 8.7 per cent in April to 16.6 per cent in May, while diesel prices rose significantly from 10.8 per cent to 21.5 percent. Kerosene recorded the sharpest increase, climbing from 7.5 per cent to 25.4 per cent. Cooking oil prices also edged upwards, reversing a previous decline from minus 0.1 per cent to 1.1 per cent.

Despite the rise in services inflation, annual goods inflation eased slightly to 1.7 per cent in May, down from 2.0 per cent recorded in April.

UBOS attributes the moderation mainly to declining food prices, particularly maize flour, whose inflation slowed sharply to 0.9 per cent from 5.9 per cent the previous month. The reduction in staple food prices helped ease some of the broader inflationary pressures.

UBOS further notes that the overall annual inflation rate of 3.2 per cent in May 2026 was largely driven by increased transport costs, as well as rising expenses in housing, water, electricity, gas, and other utilities. These sectors accounted for much of the upward pressure on consumer prices during the month.

The report also highlights regional disparities in inflation levels across the country. Kampala’s high-income group and Masaka registered the highest annual inflation rate at 3.9 per cent, while Mbale Centre recorded the lowest at 1.7 per cent.

Meanwhile, inflation in the construction sector also increased by 1.1 per cent in April 2026, compared to a 0.8 per cent increase registered in March 2026. UBOS attributes the rise to increased prices of construction materials, including diesel, cement, sand, clay bricks and tiles, adhesives, sealants, water, and grout.

Economists now warn that continued instability in global oil markets could sustain upward pressure on fuel prices in the coming months, with likely effects on transport fares, commodity prices, production costs, and household expenditure.