
The monthly Consumer Price Index (CPI) report released on August 10 shows that the urban index, used as the headline measure for monetary policy, edged up by 0.1 percent compared to June 2025. Over the past 12 months, the average annual inflation rate stood at 5.9 percent.
Health costs surged by 70.7 percent year-on-year, marking the largest increase among major categories, while restaurants and hotels saw prices jump by 20.1 percent. Meat prices soared by 30.7 percent, and alcoholic beverages, tobacco, and narcotics rose by 12.2 percent. Transport costs were up 7.0 percent over the year.
Food and non-alcoholic beverages overall rose by 6.4 percent, though vegetable prices fell by 6.7 percent compared to July 2024. On a monthly basis, fresh product prices declined by 4.4 percent, contributing to a slowdown in food inflation, while imported goods costs climbed 1.4 percent.
In rural areas, the CPI increased by 7.0 percent year-on-year but fell by 1.1 percent compared to June. The overall national CPI rose by 7.2 percent over the year and dropped by 0.6 percent month-on-month.
The report also noted underlying inflation, which excludes fresh food and energy, at 7.7 percent on an annual basis and 1.5 percent monthly. Imported goods inflation stood at 9.3 percent, while local goods rose by 6.7 percent.
NISR compiles the CPI using prices of 1,622 products collected from 12 urban centers and rural areas nationwide. The indicator tracks the average change over time in prices paid by households for goods and services and serves as a key measure for monetary policy decisions.

Wycliffe Nyamasege
Source : https://en.igihe.com/news/article/rwanda-s-consumer-prices-rose-by-7-3-in-july