Rwanda’s annual inflation rate fell sharply to 13.64 percent in April from 17.08 percent in the previous month, the National Institute of statistics of Rwanda, said on Wednesday.

The national statistics body, which attributed the fall in inflation to a decline in food prices, said that in April 2009 the general consumer prices index is established at 184.2. This stands for a decrease of 0.04 percent over the previous month which was 184.3.

The NISR also said that the underlying inflation rate, excluding fresh food and energy, dropped to 12.6 percent down from the previous month’s 16.3 percent.

"The decrease in the consumer prices index is attributable primarily to the decrease in prices of food and non-alcoholic beverages,” the NISR said in a statement.

Prices of food and non alcoholic beverages decreased by 1.65 percent due to the respective 2.91 percent and 1.99 percent decline of bread/cereals and meat indices.

The ‘local goods’ increased at a decreasing rate by 14.62 percent compared to the previous month when they rose by 17.77 percent.

Imported products, which have of recent been the major cause of high inflation in the country, rose by only 11.01 percent compared to 15.59 percent in the previous month.

Government targets annual average inflation of 7.5 percent in 2009 as Gross Domestic Product (GDP) growth rate in the Financial Year 2009/10 is expected to drop to 5.7 percent from 11.2 percent in 2008.

The Ministry of Finance and Economic Planning says that in the medium term inflation should remain at five percent due to lower international prices, strong agriculture performance and consistent monetary policy and fiscal policy.

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