The National Institute of Statistics of Rwanda (NISR) has revised the Consumer Price Index (CPI) to capture data that accurately reflects the spending patterns of all consumers in Rwanda.
The CPI measures the average change in the prices of consumer goods and services purchased by households.
The statistics body said last week that Rwanda’s CPI has been adjusted to international best practices to include weights that are based on consumer spending in 2005/2006.
“The new consumer price index will be flexible for discontinuity of products and replacement of items and price imputation,” a statement issued by the NISR said.
Yusuf Murangwa, the Director General of the NISR said that the statistics body has embraced the use of modified laspeyres—a method that will allow the CPI to better represent the Rwanda’s changing consumer sector.
“Routine and regular updating of the CPI is necessary to ensure that the data accurately reflect current purchasing patterns of Rwandan consumers,” said Murangwa.
With the new CPI, the national statistics body says that it will be able to take into consideration the data from up country, shifting from the old system where inflation fingers were based on data gathered from urban Rwanda.
Murangwa noted that the CPI will allow the sample of items and their weights to reflect current expenditures made by Rwandans.
“It is the objective of the NISR that the CPI reflects international recommendations and the best practices,” the statement said.