Rwanda's headline inflation rose to 6.9% in May 2025 compared to the same month last year, according to the latest Consumer Price Index (CPI) report released on Tuesday by the National Institute of Statistics of Rwanda (NISR).
The urban CPI, which serves as the key index for monetary policy decisions, also showed a 0.6% month-on-month increase from April 2025. On a twelve-month average basis, the inflation rate stood at 5.5%.
The report attributes the annual surge primarily to rising costs in essential categories, notably food and non-alcoholic beverages, which increased by 9.2% year-on-year. Meat prices registered a sharp 32.5% annual increase, while restaurant and hotel services jumped 16.6%. Education costs climbed by 8.3%, and prices for alcoholic beverages and tobacco rose by 7.5%.
Housing, water, electricity, gas and other fuels saw a modest 3.3% increase, while transport costs rose 3.7% annually.
Monthly price pressures were more subdued, with food and non-alcoholic beverages rising by 0.5%, bread and cereals by 2.3%, and non-alcoholic beverages by 1.2%. However, some items experienced price reliefâ€"vegetable prices fell by 2.7%, and health-related expenses dropped by 0.8%.
Underlying inflation, which excludes volatile items such as fresh food and energy, rose by 6.0% year-on-year and 1.1% compared to the previous month, suggesting persistent core price pressures.
Rural areas experienced even higher inflation than urban centres, with the rural CPI increasing by 8.2% over the year. However, rural prices fell by 0.4% on a monthly basis, mainly due to declines in food prices, including a 3.3% drop in vegetable costs.
The national CPI, which combines both urban and rural data, showed a 7.7% annual increase and remained flat on a monthly basis.
Imported goods contributed notably to inflation, with a 6.9% annual rise and a 2.0% increase from April to May. Meanwhile, prices of fresh products surged 12.3% year-on-year, despite falling by 1.4% in the past month. Energy prices bucked the broader trend, falling 0.8% year-on-year but increasing 1.9% month-on-month.
The latest inflation figures come amid ongoing concerns over global commodity prices and supply chain disruptions, with the National Bank of Rwanda closely monitoring inflation trends ahead of its next monetary policy meeting.
The CPI report is based on a basket of 1,622 goods and services priced monthly across urban and rural areas, covering more than 40,000 price observations nationwide. The index uses the Modified Laspeyres formula and draws its weights from the 2013/14 Integrated Household Living Conditions Survey.
Wycliffe Nyamasege
Source : https://en.igihe.com/business-62/article/rwanda-s-consumer-prices-rose-by-6-9-in-may
