The cost of goods and services, as measured by the Urban Consumer Price Index (CPI), rose by 7.4per cent year-over-year in January 2025, up from 6.8 per cent in December 2024, according to data from the National Institute of Statistics Rwanda (NISR). ALSO READ: Consumer prices hit 6.8% in December The January inflation rate is the highest since early last year when it was successfully brought within the National Bank of Rwanda’s (BNR) target range of 2-8 per cent. The annual average inflation rate between January 2025 and January 2024 was 5 per cent, according to NISR. According to the latest data, meat prices increased the most during the period under review at 30.7 per cent, a continuation from December when it had increased by 25.4 per cent. Claude Mwizerwa, Economic Statistics Manager at NISR, explained that the slight increase in meat prices was due to the zero-grazing policy, which prioritises milk production by limiting the number of cows being slaughtered. “As a result, the supply of beef has decreased, leading to higher prices. Beef is the most consumed meat among Rwandans, he told The New Times in a separate interview last month. In January, prices of foodstuff and non-alcoholic beverages increased by 7.2 per cent, bread and cereal prices decreased by 1.6 per cent, milk, cheese, and eggs by 9.6 per cent, and vegetables prices by 7.4 per cent. In January, prices of foodstuff and non-alcoholic beverages increased by 7.2 per cent. Prices of milk, cheese, and eggs increased by 9.6 per cent, while vegetables prices rose by 7.4 per cent. On the other hand, bread and cereal prices dropped by 1.6 per cent. The cost of housing, water, electricity, gas, and other fuels increased by 4 per cent, clothing and footwear by 5 per cent, prices in restaurants and hotels increased by 9.5 per cent, and transport prices also surged by 18.5 percent. On February 8, Rwanda Utilities Regulatory Authority (RURA) announced an increase in fuel prices, with gasoline now set at Rwf1,633 per litre and diesel at Rwf1,647 per litre. The price hike is driven by fluctuations in global petroleum product prices. CPI is calculated based on approximately 1,622 products across 12 urban centers in Rwanda, including shops, markets, hospitals, schools, among other observation places. The central bank closed 2024 keeping its policy rate – the key interest rate that guides borrowing in the economy to direct inflation movement – at 6.5 per cent, an ease from the previous measure instated as the country sought to fight higher inflation. It is expected to issue a new update on Thursday, February 13, during the periodical presentation of the Monetary Policy Committee outcomes – the first in 2025.
