Rwanda’s inflation eases

RWANDA’S inflation for the month of June dropped by 28 per cent to 5.92 per cent from 8.32 per cent the previous month, due to drop in food and non-alcoholic beverages, official data indicates.National Institute of Statistics of Rwanda (NISR) announced on Sunday that the change gives the country’s annual average general inflation rate of 7.5 per cent for the month of June.“The underlying inflation rate (excluding fresh food and energy) increased by 0.02 per cent compared to the previous month and increased by 3.65 per cent on annual change.The annual average underlying inflation rate is 6.8 per cent in June 2012 down from the previous month’s 6.9 per cent,” NISR said in a statement yesterday.NISR said the decrease in the consumer price index (Inflation) of 0.71 per cent was primarily attributable to the decrease in Food and non-alcoholic beverages of 1.00 percent and Housing, water, electricity, gas and other fuels 2.56 per cent.The ease in prices of food and non alcoholic beverages is primarily attributed to the decrease of 4.14 per cent on vegetables due to good weather in season A. “The prices of the fresh products had a positive annual change of 16.89 between June 2012 and June 2011,” the statement reads. The statement indicates that in annual change, the increase in the general index of 5.92 per cent is largely due to the rising prices of Food and non alcoholic beverages 11.32 per cent and housing, water, electricity, gas and other fuels 5.53 per cent which was contributed to 4.07 per cent and 1.16 per cent respectively.The ‘local goods’ increased by 6.75 per cent on annual change with a monthly change of -1.12 per cent, while prices of the imported products increased by 2.65 per cent on annual change with a monthly change of 0.99 percent.Recently, National Bank of Rwanda decided to keep the lending rate unchanged to allow commercial banks to continue increasing credit to the private sector.“The Rwandan economy is continuing to show strong growth, while inflationary pressures are currently high, but expected to ease as the regional inflation pressures stabilises and local economic activities strengthen,” Central bank Governor, Amb. Claver Gatete said recently.In the last five months of 2012, credit to private sector increased by 15.5 per cent with new authorised loans recording 39 per cent. The economy is projected to grow by 7.7 per cent in 2012.

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Rwanda’s inflation eases