Consumer prices on Rwandan market increased to 13.9 per cent in September compared to the same period in 2022, and the 12.3 per cent recorded in August. Also known as inflation which looks at the pace at which prices of consumables increase on the market year on year and on a monthly basis, they are calculated based on approximately 1,622 products in 12 urban centres of Rwanda. PODCAST: Rwanda's war against inflation and stance on cryptocurrency Data from National Institute of Statistics Rwanda (NISR), on October 10, revealed that prices of foodstuffs and non-alcoholic beverages increased by 29.6 per cent, bread and cereal prices rose by 4.8 per cent, meat prices by 11 per cent, milk, cheese, and eggs by 3.3 per cent, and vegetables by 58.1per cent. The cost of housing, water, electricity, gas, and other fuels increased by 3.3 per cent, transportation rose by 5.9 per cent, while prices in restaurants and hotels increased by 6.9 per cent. Rwanda’s inflation reached a record high in November 2022, standing at 21.7 per cent, the first time in 15 years. According to the central bank, it has been gradually decreasing since then, thanks to the implementation of monetary policy measures. The National Bank of Rwanda increased its key repo rate to influence lending rates and reduce liquidity in the banking system to 7.5 per cent in August. ALSO READ: Rwanda: Five major economic highlights in first six months of 2023 Faced with economic challenges, especially underperforming food crop production that persisted throughout the second quarter of the year, the decelerating trend of inflation slightly curved upwards in August and September. On the other hand, global fuel prices significantly hiked on international markets and while Rwanda fully imports all its petroleum products, prices were revised upwards at 11 per cent in early October. In a recent podcast interview with Soraya Hakuziyaremye, Deputy Governor of NBR, on October 9, said that they are hopeful that consumer prices will reduce at the end of the year, pointing at the potential of good performance of the current agriculture season. The central bank targets an acceptable inflation rate between two per cent and eight per cent, and they project it to be at an average of 7.6 per cent at the end of 2023 and around five per cent in 2024.
