Annual report - Bank of Uganda

The main challenge for the Bank of Uganda's monetary policy in 2005-06 was related to shocks associated with the prolonged drought, which adversely affected agricultural production and pushed up food crops inflation.

During 2005/06, the annual report said, inflation averaged 6.5% and 4.9% for annual headline and underlying inflation rates. As a result of exogenous shocks including drought, electric power shortages, and the rise in international oil prices, the real GDP growth was estimated to be

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