RWANDA’S inflation rate climbed to 8.32 per cent in the month of May,  from 6.95 percent in April, according to the National Institute of Statistics of Rwanda (NISR) The statistics body says consumer prices in urban centres surged 1.41 per cent in May from April, driven by food prices and utilities bills.Prices of food and non-alcoholic beverages soared 1.12 per cent with a 2.34 per cent jump in the cost of bread and cereals the main driver.The NISR said that in May prices of housing, water, electricity, gas and other fuels costs climbed 3.60 per cent during the month while transport prices increased 0.61 percent.The all Rwanda consumer price index rose 1.55 per cent from April, leaving the year-on-year rate of inflation at 10.79 per cent.The underlying inflation rate, which excludes fresh food and energy), increased by 1.33 per cent compared to the previous month and increased by 5.43 per cent on annual change. The annual average underlying inflation rate rose to 6.95 per cent in May 2012 up from the previous month 6.86 per cent, the statistics body said. In his 2012/13 Budget speech on Thursday Finance Minister, John Rwangombwa said that Rwanda’s economy is projected to grow by 7.7 per cent this year with a projected inflation rate of 7 per cent by end 2012.Growth is expected to be driven by robust performance of agriculture industry, construction and the service sectors. Agriculture is projected to grow by 6.5 per cent compared to 5 per cent recorded in 2011 led by a growth in the food crops sub-sector. This could possibly ease inflationary pressures by the end of the year. Both the cost of local goods and imported goods climbed.Rwanda anticipates a slow growth in export receipts, of 1 per cent compared to 56 per cent experienced last year, putting pressure on the trade deficit, which is already wide.