"This brief argues that, contrary to the mixed response of the government policy apparatus, given the current state of affairs,it is not only tenable but necessary for the government to develop a coherent set of short and long term policy interventions to stabalize the economy and support its growth, while lessening the hardships of the most vulnerable and preparing for future economic shocks. The remainder of the brief proceeds as follows: Section 2 provides an analysis of Uganda's economic situation in the recent past with an emphasis on fuel, commodity and food prices as well as developments in the domestic foreign currency market. Section three highlights the possible drivers of inflation and exchange rates. Section four offers short- and long term recommendations and section five concludes."