Rwanda’s inflation rate dropped to 3.65 in December from 4.58per cent in November, giving a general inflation rate (by an annual average) of 4.2 per cent during the month.Underlying inflation rate, which excludes fresh food and energy, increased by 0.24 per cent compared to the previous month, and rose by 3.8 per cent year-on-year, National Institute of Statistics of Rwanda Consumer Price Index monthly report for December indicates.All urban general index decreased by 1.7 per cent over the month, the report added. Oscar Sibomana, a principal statistician at the National Institute of Statistics of Rwanda, said the annual average underlying inflation rate was at 4 per cent in December, up from 3.9 per cent in November. The 1.7 per cent decrease in the consumer price index was primarily due to 4.6 per cent drop in prices of food and non-alcoholic beverages, as well as a 0.30 per cent reduction in the cost of housing, water, electricity, gas and other fuels. The report attributed the decline in prices of food and non-alcoholic beverages to a 12.6 per cent decrease in rates of vegetables. In annual change, the increase in the general index of 3.7 per cent is mainly due to the rising prices of food and non-alcoholic beverages (3.9 per cent) and education (35.2 per cent), which contributed an increase of 1.47 per cent and 1.29 per cent, respectively. It indicated that prices of ‘local goods’ increased by 4.2 per cent year-on-year, but reduced by over 2 per cent on a monthly basis. Those of imported products declined by 0.23 per cent, and rose by 1.6 per cent when compared to the same period last year.The consumer price index is a measure of the average change over time of goods and services purchased by households.