To what extent is inflation in your country a result of increased costs of production? or Causes of Cost-Push Inflation 

In Uganda the following conditions increase the cost of production

• High wages and salaries
• Increasing prices of factor inputs such as cost of raw material
• Increasing cost of machinery
• High cost of transport/fuel
• High costs of borrowing
• High level of taxation
• Natural disasters, such as floods, earthquakes, or fires,; if a large disaster causes unexpected damage to a production facility and results in a shutdown or partial disruption of the production chain, higher production costs are likely to follow.

Other causes of inflation include

• Uganda being an agro-based economy, it has not generated adequate investment to boost other productive sectors. This has been due to inadequate inputs like fertilizers, ploughs, etc. which has caused scarcity of production leading to an increase in prices
• Has climate such as draught, too much rain lead to food scarcity and raw materials causing increases in their prices
• High government expenditure on unproductive activities increases money supply leading to increased prices
• Trade embargoes cause scarcity of imports leading to increase in prices of imports
• Frequent devaluations tend to cause a rise in prices of import goods and services.
• Depreciations of machinery cause a reduction in production leading to scarcity of goods and hence high prices of goods
• Frequent monetary expansion, which is not backed by production, has always caused excessive demand and high prices of products.
• Population pressures. High population growth rate exerts pressure on few commodities forcing prices to sour.
• High marginal propensity to import increase the demand and cost of foreign exchange and prices of imported commodities.