Inflation rate increases by 2.1 per cent

Rwanda’s consumer price index (CPI), the main gauge of inflation, increased by 2.1 per cent year –on- year during the month of December 2014 compared to 3.6 per cent the previous year, a new report has indicated. On monthly basis, inflation decreased by 0.3 per cent, the report released in Kigali yesterday by the National Institute of Statistics Rwanda (NISR), further indicated. According to the report, the annual average rate between December 2013/14 is 1.8 per cent. The increase was mainly due to the rising prices of food and non-alcoholic beverages, which increased by 0.7 per cent according to the report. According to Sébastien Manzi, NISR’S Director of Economic Statistics Department, CPI for housing, water, electricity, gas and other fuels increased by 3.7 per cent respectively. “While consumer index for education increased by 7.4 per cent during the period under review, the biggest negative contribution came from ‘transport which increased by 0.3 per centage points,” Manzi told The New Times. Meanwhile, the underlying inflation rate (excluding fresh food and energy) increased by 0.3 per cent when compared to 0.2 per cent recorded in November 2014 and increased by 2.9 per cent when compared to December 2013. This, therefore, means that the annual average underlying inflation rate is currently at 2.7 per cent with a monthly change of -0.3 per cent compared to November 2014. This further means that the annual average rate between December 2014 and December 2013 is 1.8 per cent. On annual basis, the local goods index increased by 2.2 per cent, and imported goods index by 1.6 per cent. However, index for fresh products decreased by 1.3 per cent though that of energy increased by 2.0 per cent with core index (the general index excluding fresh products and energy) increased by 2.9 per cent. The Urban Consumer Price Index is calculated based on 1,022 products in 12 urban centers in the country.

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Inflation rate increases by 2.1 per cent