Rwanda’s headline inflation eased to 4.2 per cent in March 2024, from 4.9 per cent in February 2024, according to the latest Urban Consumer Price (CPI) Index published by the the National Institute of Statistics of Rwanda (NISR).
This was the fourth consecutive month that headline inflation eased into the BNR target range of 2-8 per cent.
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CPI is a measure of inflation that tracks changes in the average price of a basket of goods and services commonly purchased by consumers.
According to the NISR’s latest CPI report, annual average inflation rate in Rwanda’s urban areas was 10.2 per cent between March 2024 and March 2023.
Rise in transport prices, non-alcoholic beverages
Food Inflation continued to be the largest contributor to inflationary pressures, with food and non-alcoholic beverages index gaining 2.5 per cent year-on-year and 0.6 per cent on monthly basis.
Transport increased by 14.8 per cent on annual basis and it increased by 6.2 per cent on monthly basis. This can be attributed partly to the removal of subsidies on public transport.
In February, the government announced a decision to remove subsidies in the public transport sector, which resulted in a hike in fares that passengers must pay, since mid-March.
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Increase in prices of imported and local products
On annual basis, the local goods index gained 2.9 per cent, while the imported goods index rose by 8.3 percent, highlighting the impact on imported inflation on Rwanda’s inflation basket.
Prices of fresh products – food products which have seasonal fluctuations – decreased by 0.5 per cent, while prices of energy increased by 3.3 per cent.
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On a monthly basis, prices of local goods increased by 1.2 per cent, the imported goods index slightly went up by 0.8 per cent, prices of fresh products increased by 1 per cent, while the energy index grew by 1 per cent.
Meanwhile, Rural CPI decreased by 1.7 per cent on annual basis, suggesting that things are slightly cheaper in rural areas compared to a year ago.
However, Rural CPI increased by 0.5 per cent on monthly basis.
Overall, Rwanda CPI increased by 0.6 per cent on annual basis and it increased by 0.7 per cent on monthly basis.