Rwanda’s inflation slowed to 0.9 per cent year-on-year in August down from 1.9 per cent in July, the National Institute of Statistics of Rwanda (NISR) monthly consumer index report released yesterday indicates.

On monthly basis, it dropped marginally by 0.2 per cent from 0.3 per cent recorded in July. The decrease was attributed to reduction in food prices, especially vegetables.

Dr Thomas Kigabo, the central bank chief economist, said there was increased production of horticulture products during season C of the year. 

"This resulted into low food prices and eventually, a drop in inflation,” he said. 

Food prices are the main drivers of inflation.

Food prices declined by 0.3 per cent year-on-year compared to increase of 2.5 per cent in July.

According to the report, the annual average underlying inflation rate was recorded at 3.1 per cent, while the annual average inflation declined to 3 per cent in August from 3.3 per cent recorded in July. Core inflation (excluding fresh produce and energy) rose slightly to 2.5 per cent in annual change last month, up from to 2.3 per cent recorded in July.