Drought blamed for high monthly inflation

Prices of food and other essentials have been rising for the last eight months pushing inflation levels to the highest ever witnessed in the history of Rwanda.

Prices of food and other essentials have been rising for the last eight months pushing inflation levels to the highest ever witnessed in the history of Rwanda.

Dry beans in Kigali City are at Rwf400 per kg from Rwf 300 while fresh ones cost Rwf 700 from Rwf 500.

Matooke is now at Rwf 150 per kp from Rwf 100 while beef has shot to Rwf 1,800 per kg from Rwf 1500.

These high prices have been exacerbated by the prolonged drought that hit parts of food producing areas in the country.

Minister of Finance and Economic Planning, James Musoni, said the shot supply of food in the country has led to an increase in food prices.

He estimates that the September inflation hit 20 percent.

The minister revealed the inflation figure while addressing representatives from Rwanda’s different financial institutions on the current global financial crisis and how Rwandan economy will be protected.

The institutions included commercial banks, Micro-Finance Institutions (MFI’s), insurance companies, Capital Market Advisory Council (CMAC) and the Social Security Fund of Rwanda (SSFR).

“The first season was bad and the country heavily depended on imports, but we are optimistic that next season will be good,” Musoni noted.

Food has remained expensive despite a fall in prices of petroleum products both on the world market and at pump station in the country.

Since October 6, 2008 fuel was reduced by 4.761 percent. The pump price for petrol reduced from Frw924 to Frw880 while diesel is now Frw870 from Frw924 and the

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