KAMPALA, Jan 31 (Reuters) - Uganda's inflation edged down in January as food and transport prices fell but the modest decline and persistent core inflation meant policymakers meeting next week were seen as unlikely to cut interest rates.The Uganda Bureau of Statistics (UBOS) said on Thursday that year-on-year inflation had eased to 4.9 percent in January from a revised 5.3 percent a month earlier.
The core rate of inflation - which excludes food crops, fuel, electricity and metered water, and is targeted by the central bank - rose to 5.6 percent from 4.6 percent in December.
Analysts said the small decline in prices was unlikely to prompt the central bank to resume monetary easing after leaving the policy rate unchanged at 12 percent this month, in part to support a weak currency.
Uganda's central bank held interest rates on Jan. 3, as it treads a path between managing inflation and supporting an economic upturn it said was likely to bring more cuts borrowing costs in the coming year.









