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UPDATE 1-Uganda core inflation rises on higher oil -IMF

Fri Mar 21, 2008 10:14pm IST
 
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(Adds quotes, details from IMF statement)

WASHINGTON, March 21 (Reuters) - Surging energy prices have pushed up Uganda's core inflation to 7 percent, above a government target of 5 percent, the International Monetary Fund said on Friday amid general concerns that inflationary pressures are rising in sub-Saharan Africa.

"The Bank of Uganda is addressing the upward pressures on the money supply from large foreign exchange inflows in order to move inflation back in line with the target," the IMF said in a statement.

IMF staff who were in Uganda for a routine visit said post-election violence in neighboring Kenya appears to have had "very limited" impact on Uganda's economy.

It said disruptions to Ugandan exports through Kenya during the violence were short-lived, limiting the impact on the economy.

The IMF forecast for Ugandan economic growth for 2008/09 is unchanged at 7 percent. The Ugandan shilling has "appropriately appreciated" against the U.S. dollar, bearing in mind the dollar's decline against major currencies, the IMF added. (Reporting by Lesley Wroughton; Editing by Chizu Nomiyama)

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