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[QUOTE="Munyaradzi Mafaro, post: 39197, member: 636"]
The Bank of Uganda sets interest rates every month to control rising prices across the country. The central bank kept rates at 9.75 percent during May after inflation climbed slightly during April. Headline inflation reached 3.5 percent and core inflation hit 3.9 percent from the previous month. Both numbers stay below the government target of 5 percent for price increases. Officials credit stable currency exchange rates and lower global oil costs for keeping inflation down.

Governor Michael Atingi-Ego explains that low inflation does not mean cheaper prices at markets. Inflation measures how fast prices rise rather than the actual costs of goods people buy. A bunch of matooke might cost 20,000 shillings one month and 25,000 the next month. The inflation rate shows how quickly the price jumped between the two months. Lower inflation means prices still go up, but at a slower rate.

Many Ugandans feel confused because groceries remain expensive despite government reports about falling inflation. The central bank uses average prices from many different products to calculate overall inflation rates. Some individual items, like food or fuel, may cost much more than the average inflation number suggests. People shopping for specific goods might see higher price increases than what official statistics show.
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