Consumer prices in Rwanda increased by 4.9 per cent year-on-year in July and decreased by 0.1 per cent from the 5 per cent recorded in June,

This is according to the latest Consumer Price Index (CPI), a primary measure of inflation, released by the National Institute of Statistics of Rwanda (NISR).

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Inflation reflects the rate at which prices for goods and services rise over time.

It is calculated based on approximately 1,622 products across 12 urban centers in Rwanda. The annual average inflation rate between July 2023 and July 2024 was 7.2 per cent.

This decline is attributed to the National Bank of Rwanda’s (NBR) monetary policy and government interventions, which brought inflation within the target range of 5 to 8 per cent.

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As a result of easing inflation, the central bank reduced its key interest rate by 50 basis points to 7 per cent, down from 7.5per cent.

The central bank projects that inflation will remain within its target range for the remainder of 2024 and into 2025.

In June, prices for food and non-alcoholic beverages increased by 1.5 per cent, transport costs rose by 10.5 per cent, and meat prices saw a 10.5 per cent increase.

Prices for milk, cheese, and eggs surged by 20.8 per cent, while bread and cereal prices decreased by 1.1 per cent. Vegetable prices dropped by 2.4 per cent.

Housing, water, electricity, gas, and other fuel costs rose by 4.5 per cent, while prices in restaurants and hotels increased by 2.7 per cent.

In a related development, Rwanda Utilities Regulatory Authority (RURA) revised fuel prices on August 7, with slight reductions.

The price of gasoline was lowered to Rwf1,629 per liter from Rwf1,663 per liter, while that of diesel remained unchanged at Rwf1,652 per liter.