Climatic change and external factors are to blame for the current increase in prices of foodstuffs in the country, a Central bank official has said. A mini survey of markets and shops in the city indicates that prices of some foodstuffs and other essential commodities have continued to increase, some by as much as 50 percent, the highest in the country in past three months. But the bank official who requested to remain anonymous refuted claims that the price increase was the result of a unstable economy. “If we import a commodity from a country that is experiencing inflation, the effect is transferred to our economy. But our monetary policy on local produce is still stable,” the official revealed. The 2007 monetary policy report indicates that inflation slowed down in response to significant fall in prices of foodstuffs. Last month the Governor of the National Bank of Rwanda (BNR) François Kanimba revealed that the bank would contain inflation to less than 10 per cent. “Compared to the beginning of 2006, inflationary pressure significantly dropped during the first half of 2007”, Kanimba said. Rose Mukarwego, a vendor at Muhima market in lower Kiyovu says she increased her prices due to high price from his suppliers. “Our suppliers have increased their prices on every commodity they supply us, so we have to do the same if we are to remain in the business”, she said. She said that the smallest cluster of yellow bananas costs Frw200-250 compared to previous months when it was selling at Frw150-200. The price Sugar has increased to Frw 700 from 600-650, a sack of charcoal now costs Frw4,700 an increase from Frw4,500 last month. Consumers of Irish potatoes, cassava, green bananas, sorghum, beans, rice, and groundnuts have to dig deeper into their pockets these days if they are to afford a meal. “I know our clients are complaining about the price increment, but I have nothing to do. I also get them at high prices compared to previous months,” Mukarwego explained. Ends
