Reacting to the inflation rise, Prof. Nickson Kamukama, a financial literacy consultant from Makerere University Business School says the high inflow of foreign goods is hitting the economy harder.
“The government needs to come out and fix prices of fuel mainly diesel. If this can be fixed, then inflation will go down. We also need to try and increase our production plus reduce importation of goods in order to fight these alarming inflation levels,” he says.
Meanwhile Augustus Nuwagaba’s, an economist from Makerere University said that the situation is getting out of hand and needs to be addressed seriously and critically.
“Unfortunately it may even worsen because the consumption patterns of Ugandans are still bad. Our exports are becoming less and less each day yet we still import flashy and usually expensive commodities. Under this situation, Inflation will go higher,” he said.
He has, however, advised that consumption behaviour needs to be changed, imports limited, put a stop on fiscal indiscipline and cut government expenditures in order to deal with the worsening inflation.
Report by: Walter Wafula for Daily Monitor
