July inflation down to five percent

Rwanda’s year-on-year inflation fell to 5.81 percent in July this year from 10.07 percent in the previous month. The National Institute of Statistics of Rwanda (NISR) said that the underlying inflation rate—excluding fresh food and energy is established at 4.89 percent compared to the previous month when it was 12.39 percent on annual change. According to the national statistics body, the decrease in the consumer prices index is attributable primarily to the decrease in food and non-alcoholic beverages, housing, water, electricity, gas and other fuels. The body said in a statement that in the month of July, food and non-alcoholic beverages dropped by 2.10 percent while Housing, water, electricity, gas and other fuels fell 0.51. However the index of health was established at 1.26 percent due to the rise in medicine prices of 19.97 percent. Transport costs in the month of July increased by 2.89 percent due to an increase in the prices of fuel oil and lubricants whose index is 3.57 percent. According to the NISR in annual change, the increase in the general index of 5.81 percent is mainly due to the rising prices of food and non-alcoholic beverages which rose by 6.48 percent, housing, water, electricity, gas and other fuels 5.16, education 20.28 percent. The ‘local goods’ increased by 6.48 percent on annual change with a monthly decline of 0.70 percent as prices of imported products rose by 2.61 percent on annual change with a monthly change of -0.61 percent. The prices of fresh products had a negative annual change of 6.94 percent between July 2009 and July 2008. Contrary to the situation prevailing during the year 2008 marked by high inflationary pressures, Rwanda is now experiencing relatively low inflation. From 22.3 percent in December 2008, the annual overall inflation fell to 17.1 percent in March and 10.1 percent in June 2009. With such trend, government is optimistic it will close the year with single digit inflation as economic growth is estimated at 5.3 percent in the financial year 2009/10. Ends

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July inflation down to five percent