Inflation rises slightly in August

Rwanda’s year-on-year inflation rate rose to 5.81 per cent in August from 5.57 per cent a month earlier, driven mainly by a jump in food and non-alcoholic beverages, data from the National Institute of Statistics of Rwanda (NISR) indicate.The rise in vegetable prices due to undersupply as a result of erratic weather patterns over the last couple of months were the main drivers of food and non alcoholic beverages prices.“It is noted that the increase of 1.94 in prices of food and non alcoholic beverages is primary attributable to the increase of 5.23 of vegetables,” NISR said in a statement. According to central bank figures, food crop harvests in Season A of this year rose by 1.3 per cent compared to 5.4 per cent at the same period last year. Moderate harvests were attributed to heavy rains and floods that significantly destroyed crops especially fruits and vegetables thereby pushing prices higher.Other drivers of inflation include housing, water, electricity, gas and other fuels.Both prices of local and imported products experienced a moderate increase.Prices of fresh products had a positive annual change between August 2012 and August 2011.Rwanda has managed to tame inflationary pressures due to well coordinated monetary and fiscal policies. The stability of the Rwandan franc against major international currencies over the last six months, stable fuel prices have been vital in stabilising consumer prices.The Franc depreciated against the US Dollar by 1.4 per cent in the first six months of this year.