Rwanda’s Inflation slows to 4.8% in June on reduced food prices

Rwanda’s Inflation rate dropped to 4.8 percent in June compared to 6.5 percent recorded in May, the National Institute of Statistics of Rwanda monthly consumer price index (CPI) indicates.

However, this is slightly higher than the 4.1 percent recorded during the same period last year. The rate was down 0.8 percent on a monthly basis, the report indicates. Rwanda uses CPI to measure price movements over time on a selected basket of goods and services.

According to the index, the decline was due to a reduction in prices of food and non-alcoholic beverages to 9.8 percent in June, down from 14.3 percent recorded in May 2017.

On the other hand, prices for housing, water, electricity, gas, transport, and other fuels increased by 1.5 percent and 4.6 percent, respectively.

The underlying inflation rate, excluding fresh food and energy, was stable on a monthly basis and rose 4.0 percent compared to June 2016. The annual average rate between June 2016 and June 2017 was 6.8 percent, while the annual average underlying inflation rate was 4.9 percent.

According to the NISR report, prices of “local goods” increased by 4.3 percent year-on-year, but decreased by 1.1 per cent on a monthly basis, while prices of the “imported products” were up by 6.4 per cent year-on-year and inched up slightly by 0.3 percent month-on-month.

The prices of the “fresh products” increased by 6.9 percent on annual change and decreased by 3.8 per cent on a monthly basis. The central bank projects annual inflation for 2017 will be under five percent.

Culled from News Times RW