September inflation up

Rwanda’s inflation rate in the year to September rose by 1.06 percentage points to 5.1 per cent from 4.04 per cent in August.

Rwanda’s inflation rate in the year to September rose by 1.06 percentage points to 5.1 per cent from 4.04 per cent in August.

According to the National Institute of Statistics of Rwanda (NISR) consumer price index report released Thursday, the increase was mainly due to the rising prices of food and non-alcoholic beverages to 7.8 per cent, and education to 35.2 per cent, contributing about 3 per cent and 1.3 per cent, respectively.

“The increase in the consumer price index of 1.06 per cent is attributed primarily to the increase in food and non-alcoholic beverages of 3.3 per cent,” the report indicated.

The statistics body also noted that the increase of 3.3 in prices of food and non-alcoholic beverages was primarily due to 6.3 per cent rise of price on vegetables.

NISR, however, indicated that the underlying inflation rate, which excludes fresh food and energy, decreased by 0.03 per cent compared to the previous month, and increased by 3.32 per cent year-on-year.

The annual average underlying inflation rate was at 3.8 per cent in September 2013, up from the previous month 3.7 per cent, it added.

While presenting the quarterly monetary policy and financial stability statement last month, the governor of the Central Bank, John Rwangombwa, projected that the annual inflation rate would drop this month.

Indeed prices of some vegetables have reduced, with tomatoes in markets in the Eastern Province trading at lower prices this month.

NISR said prices for local goods increased by 5.7 per cent on annual change, with a monthly change of 1.5 per cent. Prices of the imported products rose by 2.5 per cent on annual change, with a monthly change of 0.21 per cent.

Rising inflation from Uganda and Kenya, Rwanda’s major trading partners, is a source of concern as it increases the risk of imported inflation.

Uganda, Rwanda’s northern neighbour and key source of imports, has seen inflation surge from 7.3 per cent in August to 8 per cent in September.

 

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