Uganda construction inflation increased slightly to 0.6% in the year ending April 2025, up from 0.5% in March. This is according to the latest Construction Input Price Index (CIPI) from the Uganda Bureau of Statistics (UBOS). The data shows subtle but important changes in various parts of the construction sector.
The modest rise reflects changes in civil engineering works and specialised construction activities. While the overall rate is still low, some categories show steeper cost shifts.
Inflation for specialised construction activities rose from 0.2% to 0.3%. The cost of building completion and finishing increased to 0.8%, up from 0.7%. This may be due to stronger demand or higher prices in final construction stages like painting and plastering.
“While the overall increase in construction inflation remains low, the sector is experiencing notable changes in specific input costs,” said Irene Namugenze Musitwa, a senior UBOS statistician. She made the remarks during a press briefing at the UBOS offices in Kampala on May 30, 2025.
Inflation in civil engineering works doubled from 0.3% in March to 0.6% in April. This was driven by a rise in road and railway construction costs, both of which recorded 0.6% inflation.
Costs in building construction rose slightly to 1.0%, up from 0.9%. Both residential and non-residential buildings contributed equally to this increase.
Monthly input prices held steady at 0.2%—unchanged from March. A stable 0.2% rise in the building construction input index helped support this consistency.
Material prices showed mixed results. Sand prices rose by 0.8% in April, compared to just 0.1% in March. This increase may be due to transport or extraction costs. Aggregate, hardcore, and crushed stone reversed a 0.1% drop with a 0.4% rise in April. High tensile steel bars also saw a 0.2% increase after falling 0.5% in March, suggesting a slight recovery in global steel prices or local demand.
On the other hand, some materials became cheaper. Lime prices fell by 0.5%, after rising by 1.3% the month before. Eucalyptus props, used in scaffolding, dropped by 1.1%. This reversed the 1.3% increase seen in March.
“This back-and-forth in material prices reflects broader trends in construction inputs,” Musitwa noted. “Some are tied to seasonal demand, fuel prices, and global supply chains.”
Despite the small increase, Uganda construction inflation may still affect contractors, developers, and planners. Materials like steel, sand, and aggregate are key for most projects. Their prices can change due to fuel costs, exchange rates, or global commodity shifts.
Contractors may need to adjust budgets and timelines. Policymakers can also use the data to plan infrastructure spending more accurately. With Uganda investing in urban growth and national projects, small shifts in material costs could have wide-reaching economic impacts.
UBOS’s regular updates help the sector track these changes. For anyone working in construction or planning, this data is vital for informed decision-making.
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