Uganda, June 1 -- A decline in both commodity and service prices contributed to decline in headline inflation to 6.2 percent from 8 percent in May, Uganda Bureau of Statistics (Ubos) has indicated.

The decline implies that consumer prices have relaxed a bit and gives hope that Bank of Uganda could consider reducing the Central Bank Rate since core inflation has also dropped to 5.6 percent from 6.8 percent.

The 5.6 percent rate is much closer to Bank of Uganda's target of 5 percent.

Presenting the Consumer Price Index in Kampala yesterday, Mr Godfrey Magona, the Ubos senior statisticians prices statistics, said the main drivers in the food category was maize flour inflation, which declined to 28 percent from 49.4 percent in April and ri...