The sharpest increases were observed in transport costs, which surged by 18.5% year-on-year, and in restaurant and hotel prices, which rose by 9.5%. Food and non-alcoholic beverages also saw a significant annual price hike of 7.2%, while education costs went up by 8.4%.
The overall CPI for Rwanda, which includes both urban and rural areas, registered an annual increase of 5.7% but declined by 1.6% on a monthly basis. Rural inflation remained lower than urban inflation, rising by 4.5% year-on-year but dropping by 2.9% from December 2024.
The core inflation rate, which excludes fresh food and energy, increased by 6.2% compared to January 2024, reflecting the persistence of underlying price pressures.
Rwanda's inflation trends have fluctuated in recent months, with rising costs in key sectors such as transport, hospitality, and essential goods affecting household budgets. The annual average inflation rate between January 2024 and January 2025 stood at 5%.
The NISR compiles the CPI based on data from 12 urban centres across the country, tracking price movements in a basket of 1,622 products.
"Weights used for the index are from the Household Living Conditions Survey (EICV4) results conducted in 2013-2014 with a sample of 14,419 households," the report reads.
The index serves as a key indicator for policymakers and the central bank in managing inflationary pressures and economic stability.
Wycliffe Nyamasege
Source : https://en.igihe.com/business/article/rwanda-s-consumer-prices-up-by-7-4-in-january
