Inflation Rate Eases in Rwanda on Softer Food Prices
Headline inflation pressure eased in Rwanda for the second straight month to 22.4% in May 2023 from 28.4% in the previous month, according to statistics office data.
It was the lowest inflation rate since last August, with the food prices rising the least in nine months to settle at 39.6% from 54.6% in April, of which bread & cereals saw a decline to 15.6% from 35.1%.
Prices also increased at a softer pace for transportation (6.0% vs 6.5%); furnishings & household equipment (9.8% vs 11.5%); clothing & footwear (7.6% vs 8.3%); restaurants & hotels (15.9% vs 16.1%), and miscellaneous goods & services (8.7% vs 12.9%).
On a monthly basis, consumer prices fell 2.7% in May, the first monthly decline in five months, reversing from a 1.7% rise in April, the National Institute of Statistics reported.
In Rwanda, the two main components of the Consumer Price Index are Food & Non-alcoholic Beverages (39% of the total weight) and Housing & Utilities (18%).
Others include Transport (8%), Alcoholic Beverages & Tobacco (7%), Restaurants & Hotels (6%), Clothing & Footwear (5%), Miscellaneous Goods & Services (5%), Household Contents, Equipment & Maintenance (3%), Communications (2%), Recreation & Culture (2%), Education (2%) and Health (1%).
According to world bank data, the inflation rate for consumer prices in Rwanda moved over the past 55 years between -2.4% and 31.1%.
For 2022, an inflation rate of 17.7% was calculated. During the observation period from 1967 to 2022, the average inflation rate was 7.3% per year. Overall, the price increase was 4,150.56%. #Inflation Rate Eases in Rwanda on Softer Food Prices