While inflation rates have risen in recent months, they were driven mainly by faster price increases of key food items and higher domestic oil prices. But the upticks in inflation are consistent with BSP’s assessment that inflation will remain elevated in the coming months before decelerating in the fourth quarter of the year.
Given the main theme of this latest Economic Update, I would like to take this opportunity to offer my own perspective on the development of the financial sector in Uganda, its role in the economy, and the challenges which it faces.