Uganda’s cost of living rose slightly in January 2026, while prices in the construction sector remained largely stable, according to new figures released by the Uganda Bureau of Statistics (UBOS).
Presenting the findings to the media on Friday, January 30, 2026, at Statistics House in Kampala, UBOS Principal Statistician for Price Statistics, Juliet Nakayenga, said annual headline inflation increased to 3.2 percent in January 2026, up from 3.1 percent recorded in December 2025.
Inflation refers to the general increase in prices of goods and services over time.
UBOS explained that the small rise was mainly driven by higher prices in the services sector. Costs related to transport, especially air travel, increased sharply, while charges for services such as refuse collection also went up. Passenger air transport inflation rose to 8.8 percent from 1.2 percent the previous month.
However, Nakayenga noted that prices of some common household items helped ease the pressure on consumers. Prices of matoke, tomatoes, sweet potatoes, and dry beans declined compared to December 2025, leading to a drop in food crops inflation from 4.4 percent to 3.0 percent.
Energy, fuel, and utilities inflation stood at 1.7 percent, slightly higher than the 1.4 percent recorded in December. This was mainly due to higher firewood prices, although electricity charges continued to fall.
UBOS data also showed differences across the country. Kampala high-income areas and Masaka recorded the highest inflation at 4.0 percent, while Arua registered the lowest inflation at 1.3 percent, largely due to stable food prices.
On a month-to-month basis, inflation increased by 0.3 percent in January 2026, compared to a 0.5 percent rise in December, showing a relatively moderate increase in prices.
Construction sector prices remain steady
UBOS Senior Statistician Irene N. Musiitwa presented findings on construction input prices. She said construction sector inflation remained low at 0.2 percent for the year ending December 2025, slightly down from 0.3 percent recorded in November 2025.
This means that the overall costs of building materials and construction services changed very little over the year.
The slowdown was mainly due to reduced price increases in specialised construction activities, such as demolition and site preparation. Prices for key construction inputs like cement, roofing sheets, nails, and steel products either declined or remained stable in December.
On a monthly basis, construction inflation stood at 0.0 percent, indicating no significant change in construction costs from November to December 2025.
UBOS noted that stable construction prices are important for the building sector, as they help contractors and developers plan better and control project costs.
