EAST AFRICA: Inflation in the East African Community (EAC) dropped sharply in June, with annual headline inflation falling to 7.8% from 22.7% a year earlier, according to the EAC Quarterly Statistics Bulletin. The regional annual headline inflation declined from 11.1% in April to 10.7% in May before slipping to 7.8% in June. On a month-on-month basis, the regional price index fell 0.8% in June after rising 1.2% in May. However, core inflation rose to 7.0% in June, up from 6.2% in April, signaling persistent underlying price pressures despite the headline decline. Food inflation also increased to 10.1% in June, though it remained below the 37.5% recorded in June 2025, indicating slower price growth compared to the previous year.
Energy, fuel, and utilities inflation eased to 11.1% in June from 14.2% in May but remained higher than the 6.3% in June 2025. Country-specific data revealed significant disparities: Tanzania reported 4.0% annual headline inflation, below the regional average, while Uganda had the lowest at 3.7%. Rwanda and South Sudan recorded the highest at 13.0% each, with Burundi at 8.0% and Kenya at 6.5%. South Sudan’s inflation fell from 23.1% in May, while Rwanda’s remained unchanged at 13.0%.
For the 2025/26 fiscal year, regional annual average headline inflation declined to 14.2% from 23.0% in 2024/25, attributed to reduced inflation in South Sudan and Burundi, where rates dropped from 179.4% to 43.2% and 33.3% to 18.0%, respectively. The easing of headline inflation coincided with divergent interest rate movements across the region during the second quarter, highlighting varied monetary responses to persistent economic challenges.
The data underscores the complex inflation dynamics within the EAC, where headline declines mask ongoing pressures in core and food sectors. Analysts note that while regional policymakers have made progress, sustained efforts will be needed to address disparities and stabilize prices. The EAC’s mixed inflation trends reflect broader economic vulnerabilities, including energy costs and food supply constraints, which remain critical areas for monitoring and policy intervention.