The figure, based on the urban Consumer Price Index (CPI) used as the benchmark for monetary policy, accelerated on a month-on-month basis, increasing by 1.3 percent compared to December 2025, pointing to renewed price momentum at the start of the year.
The latest CPI release indicates that inflationary pressures have broadened across several key sectors. Health services recorded the sharpest increase, surging by 71.1 percent year-on-year, while restaurants and hotels rose by 19.2 percent, reflecting higher service-sector costs in urban areas. Prices for alcoholic beverages and tobacco also increased significantly, up 15.6 percent.
Food-related inflation remained relatively contained but showed signs of upward pressure. Food and non-alcoholic beverages increased by 5.3 percent year-on-year, with notable monthly rises in meat, vegetables, and dairy products. Bread and cereals prices, however, declined slightly on a monthly basis, helping to moderate overall food inflation.
Energy and housing-related costs continued to influence inflation dynamics. The energy index rose by 17.8 percent year-on-year, while housing, water, electricity, gas and other fuels increased by 10.5 percent, reflecting higher utility and fuel prices. Imported goods inflation reached 9.6 percent, exceeding the 8.7 percent increase in locally produced goods, highlighting the role of external price pressures.
Transport inflation stood at 8.6 percent, while clothing and footwear rose by 5.5 percent.
Core inflation, which excludes fresh food and energy and is closely monitored as an indicator of underlying price trends, remained elevated at 8.9 percent year-on-year, with a monthly increase of 0.8 percent, suggesting that inflation is increasingly broad-based.
At the national level, combining both urban and rural indices, overall inflation stood at 7.5 percent, reflecting lower rural inflation of 6.5 percent. On a monthly basis, rural prices increased marginally by 0.1 percent, compared to the sharper rise observed in urban areas.
The annual average inflation rate between January 2025 and January 2026 was 7.2 percent, slightly below the headline January figure, while average core inflation stood at 7.4 percent.
NISR compiles the CPI using price data collected from more than 40,000 observations nationwide each month, covering 1,622 goods and services across urban and rural markets. The Urban CPI remains the principal reference for assessing inflation trends and guiding monetary policy decisions.
Wycliffe Nyamasege
Source : https://en.igihe.com/business-62/article/rwanda-inflation-rises-to-8-9-in-january
