KAMPALA, Uganda — Uganda’s construction sector saw a slight increase in inflation, with the annual rate rising to 0.6% in April 2025, up from 0.5% in March, according to the latest Construction Input Price Index (CIPI) released by the Uganda Bureau of Statistics (UBOS).
The modest uptick was largely driven by inflation in specialized construction activities, which rose to 0.3% in April from 0.2% in March. “Building Completion and Finishing” contributed significantly, recording an inflation rate of 0.8%, up from 0.7% the previous month.
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UBOS reported that prices in “Electrical, Plumbing and Other Construction Installation” remained unchanged at 1.4% year-on-year. Meanwhile, “Demolition and Site Preparation” saw a slower decline, improving to -1.7% in April from -2.0% in March.
Inflation in civil engineering works also picked up, reaching 0.6% in April compared to 0.3% in March. This growth was primarily influenced by price movements in road and railway construction, which registered inflation of 0.6%. Building construction costs rose to 1.0%, from 0.9% in March, with both residential and non-residential buildings contributing equally.
On a monthly basis, construction sector inflation held steady at 0.2% in April, mirroring the rate recorded in March. This stability was supported by a consistent 0.2% rise in the price index for inputs into building construction.
UBOS also noted mixed trends in specific construction input prices. Materials like sand and aggregate/hardcore saw price increases:
- Sand prices rose 0.8%, compared to a 0.1% increase in March.
- Prices for aggregate, hardcore, crushed or broken stone climbed 0.4%, reversing a 0.1% decline in March.
- High tensile steel bars also saw a modest 0.2% increase, recovering from a 0.5% drop in the previous month.
Conversely, some inputs registered price declines:
- Lime prices dropped 0.5% in April, down from a 1.3% increase in March.
- Eucalyptus props fell 1.1%, compared to a 1.3% increase in the previous month.
The latest data highlights the dynamic nature of Uganda’s construction sector, where rising costs in specialized activities and civil works are partially offset by easing prices for selected materials. Analysts say continued monitoring of global commodity trends and local market dynamics will be essential to understanding inflationary pressures in the sector moving forward.
