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Food Prices Shoot Up in Kampala

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Food prices have registered a two year record high in Uganda due to shortage of supplies that has increased inflation in the country from to 8.8 percent from 7.2 percent.

The sudden rise in inflation has been blamed on the increase in fuel prices and increased cost of electricity. However, the heavy rains being experienced in the country have impacted the production of agricultural products negatively as well.

When the government announced a 17 percent increase in the price of electricity in October in October the agricultural processing industry ultimately increased the prices of perishable produce such as fruits and vegetables due to the dependence on electricity for refrigeration of the perishables.

According to experts the government of Uganda needs a much more forward strategy plan to support farmers to overcome this problem since the agricultural sector employs more Ugandans than any other sector.

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