World Economy

East African Inflation Pressures Mount as Currency Weakness Drives Up Import Costs

Uganda's inflation reached its highest level in three years as the shilling depreciated. The currency ranks as the world's second-worst performer over the past three months, amplifying cost pressures on shippers moving goods into the country.

Kenya faces similar headwinds, with inflation climbing above forecasts in October as Middle East tensions pushed fuel prices to record levels. The spike raises the likelihood of the nation's first interest-rate increase since 2024.

The cost pressures ripple through global supply chains. Container shipping rates on trans-Pacific and Asia-Europe routes have climbed on stronger import demand, while major logistics operators absorbed higher fuel and linehaul expenses in recent quarters despite maintaining elevated service levels. The combination of currency weakness and fuel inflation continues reshaping freight economics across emerging markets.