Export producer prices increased by 5.9 per cent in December 2024, a decrease from 22.3 per cent recorded during the same period of the previous year, according to the Producer Price Index (PPI) published by the National Institute of Statistics of Rwanda (NISR) January 31. The same export prices for producers saw a decrease compared to 8.2 per cent recorded in November 2024. ALSO READ: Local producer prices decrease by 3.9% in November Data also show that local producers saw a price decrease of 2.5 per cent in December 2024, compared to the same period the previous year, while general prices increased by 0.2 per cent The Producer Price Index measures the average change over time in prices received by domestic producers to produce their goods and services for local sales and exports. The PPI survey covers a sample of 114 establishments and 402 products countrywide, with data collected by NISR and the National Bank of Rwanda. This is a measure of inflation from the producers’ perspective. According to the statistics, the index reached an all-time high of 8.2 per cent in February 2019 and a record low of -5.30 per cent in July 2022. The industries that comprise the PPI include mining, manufacturing, natural gas, electricity, construction, waste, information and communication. The increase in export prices in December was attributed to a 16.2 per cent increase in tea prices and 1.2 per cent in prices of mining products. However, coffee prices decreased by 2.8 per cent. Tea, coffee, and minerals are Rwanda’s top three export products. On the other hand, the decrease in local producer prices was mainly driven by a 3.1 per cent decrease in manufacturing activities, while other items like electricity, water and waste management, as well as information and communication remained unchanged. From a general perspective, manufacturing of non-metallic products increased by 8.4 percent, manufacturing of beverages increased by 7.4 per cent while manufacturing of food products decreased by 1.4 per cent. Eugene Kajigija, the Division Manager of Economic Statistics and Management of Database at the central bank, said that the figures indicate activities in boosting Rwanda’s industrial sector, whereby output changes depending on different factors like weather condition for agriculture output and market prices for some imported intermediary products, among others. Kajigija noted that the export market remains small given that Rwanda mainly trades with countries in the region. However, having a trade deficit is not alarming as long as local industries are able to produce consumer goods, and the imports are mainly composed of capital goods, he noted. The Producer Price Index looks at inflation from the viewpoint of industry and business, meaning that it looks at price changes before consumers purchase final goods and services. It is an economic indicator that can be used to predict inflation before the Consumer Price Index – consumer prices that indicate the cost of living. In December, consumer prices rose by 6.8 per cent year-on-year, up from 5 per cent in November 2024.
