Inflation rate slows to 2.9% in October

Rwanda’s inflation rate for October slowed to 2.9 per cent, down from 3.7 per cent in September, the National Institute of Statistics Rwanda (NISR) monthly Consumer Price Index (CPI) that was released yesterday indicates. Rwanda uses the CPI as main gauge of inflation. According to the report the increase is mainly due to the rising prices of food and non-alcoholic beverages which rose by 5.6 per cent, and 10.5 per cent, respectively. Overall consumer price index increased by 5.5 per cent on an annual basis, and increased by 1.5 per cent on a monthly basis, the report indicated. Lucie Mutetijabiro, the team leader at NISR’s price statistics and research unit, said the underlying inflation rate (excluding fresh food and energy) decreased by 0. 3 per cent compared to September 2015 and increased by 1.3 per cent year-on-year. Meanwhile, the index for housing, water, electricity, gas and other fuels and transport decreased by 0.1 per cent and 0.3 per cent respectively, according to the report. This annual average underlying inflation rate was at 2.2 per cent during the month. The government is projecting headline inflation to reach 3.5 per cent by the end of this year, thus containing it at below 5 per cent in the medium-term as anticipated by the National Bank of Rwanda (BNR).

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Inflation rate slows to 2.9% in October