Rwanda's inflation rate drops to 3.5% year-on-year in July

Rwanda’s inflation rate dropped to 3.5 per cent in July year-on-year from 4.8 per cent recorded in June, the monthly Consumer Price Index report for July 2017 indicates.

The decline is attributable to lower cost of foodstuffs and non-alcoholic beverages and transport, according to the report released yesterday by the National Institute of Statistics of Rwanda (NISR).

The prices of food and non-alcoholic beverages fell to 6.9 per cent last month lower than 9.8 per cent in June, while those of transport were down to 1.0 per cent compared to 4.6 per cent the previous month.

Housing, water, electricity, gas and other fuels were at 1.8 per cent, slightly higher than 1.5 per cent in June.

The monthly inflation decreased by 0.1 per cent in July 2017, mainly due to food and non-alcoholic beverages and transport which decreased by 0.5 per cent and 0.6 per cent, respectively. The underlying inflation rate (excluding fresh food and energy) increased by 0.1 per cent when compared to June 2017 and increased by 3.6 per cent when compared to July 2016. The annual average rate between July 2017 and July 2016 is 6.5 per cent, while the annual average underlying inflation rate is 4.9 per cent. The central bank projects the inflation rate to average under 5 per cent by the end 2017.