Consumer prices on Rwandan markets saw an increase of 5.8 percent year-on-year in May, with transport prices taking a bigger share in the increase, according to the National Institute of Statistics of Rwanda (NISR). ALSO READ: Transport dominates Rwanda’s 4.5% inflation in April Rwanda's Consumer Price Index (CPI), the main gauge of inflation, increased by 4.5 per cent year on year in April 2024 up from 4.2 per cent in March 2024. Urban CPI increased by 5.8 per cent on annual basis (May 2024 compared to May 2023) and stable on monthly basis (May 2024 to April 2024). The annual average inflation rate between May 2024 and May 2023 was 8.4 per cent. The adjustment of public transport fees that took effect on March 16, following the government's cessation of transport subsidies, has meant an increase in fares for passengers, and when comparing price figures in May to the same month of 2023, it reflects an increase of 24.7 per cent. The consumer price index, released on Monday, June 10, indicates that prices of foodstuff and non-alcoholic beverages increased by 4.7 per cent, bread and cereal prices by 5.4 per cent, meat prices by 12 per cent, milk, cheese, and eggs by 22 per cent, while vegetables prices declined by 2.3 per cent. The cost of housing, water, electricity, gas, and other fuels increased by 2.5 per cent, while prices in restaurants and hotels increased by 2.5 per cent. ALSO READ: Rwanda central bank’s fight against inflation After two years of hiked inflation in 2022 and 2023, the country started recording a steady decline since the beginning of 2024 owing to the central bank's monetary policy decision and government interventions which consequently lowered it within the policymaker’s band of 5 and 8 per cent. According to John Rwangombwa, the Governor of the National Bank of Rwanda, inflation is projected to evolve around 5 per cent in the next two years. In the first quarter of 2024, headline inflation – the total inflation within an economy, including commodities such as food and energy prices, which tend to be much more volatile and prone to inflationary spikes – decelerated to 4.7 per cent from 8.9 per cent in the previous quarter. This decline was due to drops in core and fresh foods inflation that offset an increase in energy inflation. The decrease in core inflation – a long run change in the costs of goods and services that does not include those from the food and energy sectors – was mainly driven by the deceleration of core food inflation, resulting from the downward trend in international prices of key processed food items such as rice, sugar, and corn flour. ALSO READ: Sugar prices go down in Kigali markets However, the transport price increase led inflation figures in May to slightly increase above the projected percentage. Other developments in the market include the slight cuts in fuel prices, on June 5. The price of gasoline was reduced to Rwf1,663 per litre from Rwf1,764 per litre, and diesel to Rwf1,652 per liter from Rwf1,684 per litre.
