Economic Performance : Inflation drops to 19.95 percent

The annual inflation reduced by 0.43 percent form 20.38 percent in January, to 19.95 percent, against a fall in food prices, according to the official figures from the National Institute of Statistics of Rwanda (NISR). The institute said in its monthly statement that annual average underlying inflation rate (excluding food stuffs) was 18.7 percent in February 2009, up from 18.3 percent in the previous month. The NISR attributed the general index of 19.95 to the rise in costs of housing, water, electricity, gas and other fuels. It was also attributable to furnishing, household equipment and routine household maintenance and education costs which rose in February. The upward trend of inflation has been attributed to both local and international factors. Official figures showed that local goods increased by 20.53 percent on annual change while prices of the imported products rose by 17.45 percent on annual change. The prices of the fresh products had a positive annual change of 27.49 percent between February 2009 and February 2008. The National Bank of Rwanda in its monetary policy statement, released in February this year, said that between September and December 2008, the consumer price level increased only by 0.7 percent, and expected such trend to continue. Ends