Home World News Emerging Markets Rwanda’s CPI down to 6.4 percent in December

Rwanda’s CPI down to 6.4 percent in December

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Consumer Confidence
Consumer Confidence AFP PHOTO / AMINU ABUBAKAR

Rwanda’s consumer price index (CPI), a main gauge of inflation, fell to 6.4 percent in December 2023, marking the first time that it falls within the 2-8 percent National Bank of Rwanda (BNR) target range since 2022, National Institute of Statistics Rwanda (NISR) announced Wednesday.

According to NISR, the average annual inflation between December 2022 and December 2023 was 14 percent.

Eugene Kajigija, NISR’s manager of economic statistics, expressed optimism about the ongoing trend of deceleration, expecting it to continue into January and February 2024. The manager attributed this trend to the ongoing harvesting of food crops, a significant factor influencing inflation calculations.

Inflation, measured on a year-on-year and monthly basis, is calculated based on approximately 1,622 products in 12 urban centers of Rwanda. In November 2022, it peaked at 21.7 percent before embarking on a decelerating trend throughout 2023, following government measures to curb it despite persistent poor agricultural performance over two consecutive years, according to NISR.’

Key price changes included an 11.6 percent increase in foodstuffs and non-alcoholic beverages, a 0.6 percent decline in bread and cereal prices, an 11.4 percent rise in meat prices, an 8.7 percent increase in milk, cheese, and eggs, and a 10.3 percent surge in vegetable prices.

Additionally, housing, water, electricity, gas, and other fuels increased by 1.5 percent, transportation saw a rise of 6.7 percent, and prices in restaurants and hotels increased by 4.8 percent.

Due to improved agricultural performance, consumers witnessed a decline in food products toward the end of 2023, particularly for Irish potatoes.

Kajigija noted that increased foodstuffs availability is a significant factor, driven by higher agricultural produce from September to December.

The overall decrease was attributed to monetary policy tightening measures in 2023, government-incentivized initiatives, and falling prices of major international commodities.

Rwanda’s central bank projects inflation to average around 5 percent in 2024, aligning with a global expectation of 5.8 percent in the same year.

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