Inflation up on high food prices

August inflation  increased to over 4 per cent, up from 3.5 per cent in July on high food prices, the National Institute of Statistics said in statement yesterday.

August inflation  increased to over 4 per cent, up from 3.5 per cent in July on high food prices, the National Institute of Statistics said in statement yesterday.

The all urban general index went up from 121.1 points in July to 122.5 points last month, which is a 1.17 per cent increase on a monthly basis.

“The increase in the consumer price index of 1.17 per cent is attributable primarily to a 2.8 per cent rise in food and non-alcoholic beverages prices,” the statement from the statistics office noted.

The body noted that the increase of 2.8 per cent in prices of food and non-alcoholic beverages was mainly driven by the rise in vegetable prices of 6.11 per cent.

NISR attributed the increase in the general index of 4.04 per cent to the rising food and non-alcoholic beverages prices of close to 5 per cent and education, 35.2 per cent. This contributed 1.9 per cent and 1.3 per cent, respectively.

Locally-made goods prices increased by 4.4 per cent year-on-year and by 1.34 per cent on a monthly basis. Prices of imported goods went up by 2.7 per cent compared to the same period last year, and by 0.5 per cent month-on-month.

The franc performance last month was also influenced by the rising inflation rate, dropping to Rwf649.8 from Rwf647.9 as at end July, according to central bank figures. The rate is, however, within the government’s medium-term range of less than 5 per cent.

Other regional economies also experienced spikes in inflation rate last month. In Kenya, the August inflation rate went to 6.67 per cent from 6.02 per cent a month earlier, mainly pushed by the rise in fuel prices. In Uganda, inflation jumped to 7.3 per cent last month from 5.1 per cent in July on high food prices.

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