Economists call for calm amid soaring prices
By Ritah Kemigisa
Economists have called for calm among Ugandans amid the rising costs of basic commodities as they study the situation.
The Bank of Uganda has since warned of a rise in inflation in the country if the global prices continue to rise than currently expected.
Currently the price of fuel remains high and the price of basic commodities like soap have risen by 85% from shs 4500 to shs 7000 while a litre of cooking oil to shs 9000.
Speaking to KFM, economist Dr Fred Muhumuza says inflation becomes a great concern if it becomes a trend saying there should be no cause of panic if the rise in prices is a one off.
He however says there is a need to monitor the situation and find out the factors for the gradual increase and advise accordingly.
“It is certainly a concern that a bar of soap that was shs 4500 is now at shs 7000, now you only begin to worry if it moves to shs 10,000 then it will have picked up a trend. But if it’s a one off increase, you need to watch the situation, to send back the bar of soap to shs 4500, you need to understand the factors that drove it, is the government able to manage them?” he said.
