The cost of goods and services, as measured by the Urban Consumer Price Index (CPI), increased by 6.8 per cent year-over-year in December 2024, up from 5 per cent in November 2024, according to data from the National Institute of Statistics Rwanda (NISR). On average, consumer prices rose by 4.8 per cent in 2024, remaining well within the central bank’s target range of 5 per cent to 8 per cent. The National Bank of Rwanda had predicted that consumer prices would average within its target range in 2024 and maintain the trend in 2025. ALSO READ: Consumer prices rise by 3.8% in October Prices of foodstuff and non-alcoholic beverages increased by 6 per cent, bread and cereal prices decreased by 1.8 per cent, meat prices soared by 25.4 per cent, milk, cheese, and eggs by 14.6 per cent, and vegetables prices by 6.9 per cent. The cost of housing, water, electricity, gas, and other fuels increased by 4.7 per cent, clothing and footwear by 5.6 per cent, prices in restaurants and hotels increased by 6.9 per cent, and transport prices also surged by 17.9 percent. CPI is calculated based on approximately 1,622 products across 12 urban centers in Rwanda, including shops, markets, hospitals, schools, among other observation places. The central bank closed 2024 keeping its policy rate – the key interest rate that guides borrowing in the economy to direct inflation movement – at 6.5 per cent, an ease from the previous measure instated as the country sought to fight higher inflation. However, it revised inflation projections for 2025 slightly upward to account for the potential impact of delayed rainfall during the ongoing Season A, which may affect the harvest of certain crops. Agriculture sector grew by 4 per cent in the third quarter of 2024 as the overall economy grew by 8.1 per cent, according to NISR.
