Inflation drops further in September

The cost of living eased in September as the country’s year-on-year inflation rate fell to 5.63 per cent from 5.81 per cent in August on account of price reductions in energy and food items. According to the National institute of Statistics of Rwanda NISR), prices for consumer goods and services in urban areas increased by 0.22 per cent, mainly driven by price increases in food and non-alcoholic beverages.The underlying inflation rate, which excludes fresh food and energy, increased by 0.2 per cent month-on-month if compared to the previous month and increased by 2.07 per cent on annual change, the statistics body said. “The annual average underlying inflation rate also stood at 5.3 per cent in September 2012 down from the previous month 5.9 per cent,” NISR said in its monthly report on inflation. Prices of food and non-alcoholic beverages increased by 0.49 per cent due to the rise in the cost of vegetables, which accelerated by 0.43 per cent.“The local goods increased by 6.77 per cent on annual change with a monthly change of 0.17 percent, while prices of the imported products increased by 1.18 per cent on annual change with a monthly change of 0.42 per cent,” the report said.According to NISR, price of furnishings and household equipment rose by 0.41 per cent month-on-month and 4.73 per cent year-on-year.Housing, water, electricity, gas and other fuel costs fell 0.14 per cent compared with August, but were up 2.40 year-on-year.The All Rwanda inflation rate rose 11.13 per cent in September from 10.91 per cent in August.Official forecasts suggest that the country will contain its inflation rate in single digits throughout this year.The economy is projected to grow at 7.7 per cent compared to 8.6 per cent last year.

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Inflation drops further in September