Rwanda’s annual inflation rate increased to 7.4 per cent last month compared to 4.5 per cent recorded during same period in 2016, the National Institute of statistics in Rwanda (NISR) consumer price index monthly report indicates. The rise was marginal compared to 7.3 per cent registered in December, according to the report released yesterday.

NISR attributed the increase in inflation during January to the rising prices of foodstuffs and non-alcoholic beverages that were up 16.2 per cent. The foodstuffs and non-alcoholic beverages category contributes the biggest percentage (28 per cent) in the basket of goods and services that the statistics body uses to measure CPI. Rwanda uses CPI to measure inflation. However, the cost of goods and services dropped by 0.4 per cent on a monthly basis.

The price index for amenities, including housing, water and electricity, gas rose to 1.5 per cent while transport contributed 8.3 per cent.

Lucie Mutetijabiro, the NISR price statistics and research unit team leader, said the country’s underlying inflation rate (excluding fresh food and energy) increased by 0.3 per cent when compared to December 2016 and was up by 5.5 per cent year-on-year. The annual average underlying inflation rate was recorded at 4.3 per cent during the month, while the prices for local and imported commodities increased by 7.1 per cent and 8.4 per cent, respectively.

Last month, John Rwangombwa, the central bank chief, had projected the inflation rate to come down to about 6.0 per cent at the end of December last year from 6.4 per cent in November and about 5.7 per cent in the first quarter of 2017.