Rwanda’s consumer prices increased by 13.7 per cent in June, at a decelerating pace from 14.1 per cent recorded in May.

ALSO READ: Rwanda's consumer prices on a steady decelerating trend

According to the National Institute of Statistics of Rwanda (NISR), the rate at which prices of foodstuff increase has been decelerating, coming down from more than 20 per cent recorded over the course of 2022.

With the continuity of this trend, the Central Bank is confident that inflation will further decrease and reach the target range of two per cent to eight per cent by the end of 2023.

ALSO READ: Rwanda's economy grows by 9.2% despite drop in food crop production

Data from NISR reveals that prices of foodstuffs and non-alcoholic beverages increased by 26.2 per cent in June, an increase from 25.4 per cent in May, this year. Bread and cereal prices rose by 13.1 per cent, meat prices by 13.4 per cent, milk, cheese, and eggs by 21.5 per cent, and vegetables by 54.5 per cent.

The cost of housing, water, electricity, gas, and other fuels increased by 3.5 per cent, transportation rose by five per cent, while prices in restaurants and hotels increased by 10.7 per cent.

In addition to imported inflation, the observed price hikes were largely attributed to poor domestic agricultural production, which made it challenging for consumers to afford staple foods. Despite the challenges posed by unfavourable weather conditions and the resulting decline in agricultural production, the economy is expected to continue growing.

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The gradual decline in the pace of commodity prices reflects the government’s implementation of various measures aimed at achieving economic stability.

In the first quarter of 2023, Rwanda’s economy experienced a robust growth of 9.2 per cent compared to the same period in 2022. This is despite a three per cent decline in the production of food crops due to poor harvest in the last quarter.