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Inflation rises with food prices, stays high in East Africa

Published on October 26, 2015

Rising food prices and the effects of exchange rate depreciation have pushed up the cost of living in the region.  Save for Tanzania and Burundi, EAC states have all recorded a rise in inflation in September.

Mid last week, Uganda’s central bank raised its benchmark lending rate from 16 per cent to 17 per cent in a bid to ease inflationary pressures.

Bank of Uganda Governor Prof Emmanuel Tumusiime-Mutebile, said that the bank’s decision to increase the CBR by 5 per cent since April has dampened inflationary pressures.

“We have increased the CBR to ensure that in the medium term, the inflation edges towards the BoU policy target of 5 per cent,” Prof Mutebile said. Read more. Source | East African