Low and stable inflation to boost economic growth

Data from the National Institute of Statistics of Rwanda (NISR), indicates that Rwanda’s annual inflation remained stable in the month of November with the underlying inflation rate, which excludes fresh food and energy, slightly increasing by 0.68 percent compared to the previous month.

Data from the National Institute of Statistics of Rwanda (NISR), indicates that Rwanda’s annual inflation remained stable in the month of November with the underlying inflation rate, which excludes fresh food and energy, slightly increasing by 0.68 percent compared to the previous month.

While the prices of ‘local goods’ decreased by 0.7 percent on a monthly variation, the prices of imported goods rose by 0.68 percent.

Rwanda has been experiencing low and stable prices of goods and services, mainly due to increased productivity in the agricultural sector and a general decline in prices of imported goods. Over the past 12 months, Rwanda has managed to keep her inflation rate below its threshold of 5 percent, thanks to the sound economic policies that the government and the central bank’s have put in place.

If maintained, the limited fluctuations in the inflation rates, will lead to reliable planning, therefore, enabling individuals and businesses to make long-term savings.

A low and stable inflation rate, in addition to a stable currency and falling interest rates, Rwanda’s macroeconomic environment will remain favourable, further advancing national goals of attracting investment and increasing productivity. And, without doubt, in such an environment, businesses will prosper.

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