Uganda’s factory-gate inflation slowed further in December 2025, driven by easing prices in manufacturing and utilities, according to data from the Uganda Bureau of Statistics (UBOS).
The Producer Price Index (PPI) for Manufacturing and Utilities, which measures prices charged by producers before goods reach consumers, rose by 0.8% annually in December, down from 1.0% in November. Manufacturing, the largest component of the index, saw inflation ease to 0.9% from 1.3%, while utilities, including electricity, remained in deflation at -0.4%, improving slightly from -1.0% in November.
Food manufacturing was the main driver of price movements within the sector. Inflation for processed food products slowed to 2.9% in December from 3.7% in November. Within this category, sugar production rose by 5.1%, up from 3.6% the previous month. Meanwhile, distilling and blending of spirits registered a -3.5% annual change, reversing a 1.4% increase in November.
Utilities continued to exert downward pressure on producer prices. Electricity generation costs fell by 1.9% annually, slightly less than November’s 2.8% decline, helping reduce input costs for manufacturers.
On a monthly basis, factory-gate prices were largely stable. Headline PPI inflation rose by 0.1%, the same as November, with manufacturing up 0.1% and utilities up 0.2%. Food processing led the monthly changes, as meat processing and preservation prices jumped 4.1%, reversing a 0.5% decline in November. Electricity generation saw no monthly price change, down from a 3.2% rise in November.
What it means for Uganda:
Stable producer prices suggest moderate cost pressures in Uganda’s industrial sector, providing businesses some relief on production costs. With the PPI at 124.81 in December 2025, up slightly from 123.85 in December 2024, the industrial sector shows gradual and controlled price growth.
Easing factory-gate inflation and stable utility costs support Uganda’s industrialization strategy, particularly in food processing, sugar, and light manufacturing, helping the country remain competitive and strengthen its export and value-add ambitions.
