Inflation in Uganda is likely to drop to between 6 and 8 percent next year, before stabilising at around 5 percent by the end of 2023, The Monitor newspaper reported, citing a Bank of Uganda official.

The forecast is 2 percent lower than earlier projections by the central bank. 

Inflation declined to 10.6 percent in November 2022 from a high of 10.7 percent in October. 

Bank of Uganda deputy governor Michael Atingi-Ego said the revision in the forecast is due to the lower impact of earlier increases in global commodity prices and the effects of the current monetary policy stance.

He said the shilling will remain stronger than expected, rising on its 1.6 percent appreciation in November.

However, the stability was largely dependent on global developments, particularly the pace of monetary tightening in the advanced economies, which is likely to slow down, Atingi-Ego added. 

(Editing by Seban Scaria )