•  Inflation, which has for a long time been stabilized at low single digit rates, has since mid 2008 crept to double-digit levels. This has been due to exogenous factors associated with high imported inflation from Uganda's major trade partners (e.g.
Kenya, South Africa, India and China), high demand for Ugandan goods from neighboring countries, as well as low supply response in the domestic economy. In addition, the high costs of fuel and food on the world market exerted upward pressures on Uganda's inflation.