Rwanda’s consumer prices edged higher in March mainly due to a soaring cost of food and non-alcoholic beverages, figures indicate Monday.
The National Institute of Statistics Of Rwanda (NISR) said the increase in the consumer price index of 2.21 is attributable primarily to the increase in the cost of food and non-alcoholic beverages (4.37), and Housing, water, electricity, gas and other fuels (2.55) in that order.
The Consumer Price Index rose by 0.33 percent from February, pushing year-on-year inflation rate to 8.18 percent in March up from 7.85 percent the previous month.
According to NISR, the increase of 4.37 percent in prices of food and non alcoholic beverages was primary driven by the increase of 10.55 percent of vegetables and 1.58 percent in bread and cereals.
The increase in the general index of 8.18 percent was pushed by rising prices of food and non alcoholic beverages which rose 15.50 percent, housing, water, electricity, gas and other fuels rose by 6.70 percent, and transport 5.31 percent which contributed 5.50 percent, 1.42 percent, and 0.70 percent in that order.
Early this year, the International Monetary Fund (IMF) projected that Rwanda’s inflation for the year 2012 will shoot up due to uncertainties in the global economy and further price shocks.
“Rwanda’s economy in 2011 is poised for high growth—but also high inflation—with elevated risks for 2012. While strong agricultural output and exports are driving high real Goss Domestic Product (GDP) growth, aggregate demand pressures are also building up and have already pushed up core inflation,” the body said earlier this year.
Central Bank Governor Claver Gatete in January said the country seeks to contain inflation at 7.5 percent this year.
In March 2012, the all urban general index was established at 115.8 percent representing an increase of 2.21 percent compared 113.3 percent the previous month.
The rise gives a general inflation rate by an annual average of 7.0 percent during the month of March 2012.