Inflation rate drops to 5.36%

Rwanda’s year-on-year urban inflation rate fell to 5.36 per cent in October from 5.63 per cent in the previous month, the National Institute of Statistics of Rwanda (NISR) said.The consumer price index—the gauge for the rise in prices of goods and services—increased by 0.33 per cent last month, primarily due to the increase in housing, water, electricity, gas and other fuels by 0.81 per cent and transport 1.04 per cent in that order.The underlying inflation rate, which excludes fresh food and energy, increased by 0.41 percent if compared to the previous month and increased by 2.54 percent on annual change,” the report reads. NISR data also indicate that the annual average underlying inflation rate increased by 4.8 per cent in October 2012 down from the previous month 5.3 per cent.The increase in the general index of 5.36 per cent was mainly due to the rising prices of food and non alcoholic beverages (by 12.10 per cent) and housing, water, electricity, gas and other fuels contributing 2.55 per cent which contributed 4.36 percent and 0.54 per cent respectively.“The ‘local goods’ increased by 6.03 per cent on annual change with a monthly change of 0.14 percent, while prices of the imported products increased by 2.71 percent on annual change with a monthly change of 1.10 per cent. The prices of the fresh products had a positive annual change of 19.36 between October 2012 and October 2011,” the report stated.Recently, the Central Bank Governor, Claver Gatete, said Rwanda’s economy is expected to exceed the 7.7 per cent growth projection this year.Rwanda’s economy grew by 7.5 per cent in the first quarter and 9.9 per cent in the second quarter.“With total loans advanced this year, we expect to exceed the 7.7 per cent economic growth projection—but we are still waiting for the figures to come in,” Gatete said

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Inflation rate drops to 5.36%