The Uganda Bureau of Statistics has released its latest market research indicating that annual headline inflation has reduced tremendously.

UBOS today released its monthly market report indicating that the annual headline inflation rate for the year ending January 2012 dropped to 25.7% from 27.0% recorded for the year ended December 2011.

Releasing the report in Kampala, the director macro economics statistics, Dr. Mukiza Chris states that food inflation decreased to 27.3% in January 2012 from 34.6% in December 2011 with non food prices inflation rising to 24.2% in January 2012.

UBOS Sya that the reduction on fuel prices, as well prices of food stuffs contributed greatly to the drop inflation.

Dr. Mukiza says that Arua registered the highest annual headline inflation rate of 39.3% compared to40.7% in December followed by Mbale and Kampala standing at 26.1% from 24.7% in December due to high income.