It is making the transition from being a set of rules on paper to a set of rules applied in the real world. As is often the case when growing up, there are growing pains from time to time. Moreover, while the Pact may be experiencing a few growing pains, it still represents an improvement on the past.
The impact of food prices on inflation was exacerbated in the middle of 2011 by the weakening of the exchange rate. This was mainly due the deteriorating BOP position that I have just described, but the volatility in the exchange rate also reflected some speculation against the Shilling on the part of Ugandans who purchased dollars to hoard and foreign portfolio capital investors.