Rwanda’s inflation rate slows to 4.8% in June

photo

The decline was attributed to reducing foodstuff prices. (Appolonia Uwanziga)

Rwanda’s inflation rate dropped to 4.8 per cent in June compared to 6.5 per cent recorded in May, the National Institute of Statistics of Rwanda monthly consumer price index (CPI) indicates. However, this is slightly higher than the 4.1 per cent recorded during the same period last year. The rate was down 0.8 per cent on a monthly basis, the report indicates. Rwanda uses CPI to measure price movements over time on a selected basket of goods and services.

According to the index, the decline was due to reduction in prices of food and non-alcoholic beverages to 9.8 per cent in June, down from 14.3 per cent recorded in May 2017.

Equally prices for housing, water, electricity, gas, transport and other fuels increased by 1.5 per cent and 4.6 per cent.

The underlying inflation rate, excluding fresh food and energy, was stable on a monthly basis, and rose 4.0 per cent compared to June 2016. The annual average rate between June 2016 and June 2017 was 6.8 per cent, while the annual average underlying inflation rate was 4.9 per cent.

According to the NISR report, prices of “local goods” increased by 4.3 per cent year-on-year, but decreased by 1.1 per cent on a monthly basis, while prices of the “imported products” were up by 6.4 per cent year-on-year and inched up slightly by 0.3 per cent month-on-month. The prices of the “fresh products” increased by 6.9 per cent on annual change and decreased by 3.8 per cent on a monthly basis. The central bank projects annual inflation for 2017 will be under 5 per cent.