Rwanda’s inflation dropped marginally to 3.6 per cent year-on-year in October from 3.8 per cent the previous month, the National Institute of Statistics of Rwanda (NISR) monthly Consumer Price Index (CPI) report indicates.
The report released yesterday shows that the inflation rate increased by 1.2 per cent on a monthly basis, while the annual average rate between October 2016 and October 2017 is 5.8 per cent.
During the month, food and non-alcoholic beverages rose by 6.4 per cent while prices for housing, water, electricity, gas and other fuels were up by 2.4 per cent and the cost of transport was registered at 3.3 per cent.
The increase in monthly CPI was due to the rise in food and non-alcoholic beverage prices, which inched up 2.9 per cent in October, the report shows.
According to NISR’s Lucie Mutetijabiro, the, underlying inflation rate (excluding fresh food and energy) increased by 0.5 per cent when compared to September 2017. “However on annual basis it rose by 2.9 per cent compared to October 2016,” Mutetijabiro added.
Globally, inflation is projected to reach 3.0 percent in 2017 up from 2.8 per cent registered in 2016.
The National Bank of Rwanda (BNR) projects a slight rise in global inflation, noting that the progressive increment in international oil prices may exert mild inflationary pressure on the Rwandan economy. The improvement in global demand, which is supported by good economic performance, is expected to positively affect the Rwandan economy, according to BNR.
This, coupled with the anticipated increase in the prices of metals and minerals, may lead to the increase in Rwanda’s export revenues and help to ease inflation and exchange rate pressures. The central bank has already projected inflation to average about 4 per cent by the end of the year.