Consumer Price Index, August 2019

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Consumer Price Index, August 2019

 

According to the National Institute of Statistics of Rwanda (NISR), the Rwandan Urban Consumer Price Index increased by 0.9% between July and August 2019. This occurred after two months of status quo (zero inflation). Compared to August 2018, urban consumer price increased by 2.3% against 1.9% in July 2019.

On annual basis, both imported and locally produced goods and services contributed to the CPI hike. The urban CPI rose by 1.8% for domestically produced goods and services and, by 4.1% for imported ones. The index increased by 2.5% for fresh products while it declined by 1.1% for energy. Excluding fresh products and energy, inflation was unchanged at 2.6% in August 2019, the same level as for the previous month.

Headline inflation was 2.3% in August 2019 as above indicated, mainly driven by rising prices of food and non-alcoholic beverages (+2.7%), alcoholic beverages and tobacco (+8.0%), clothing and footwear (+7.8%) as well as by rising prices of transport (+ 1.7%). Within food and non-alcoholic beverages, prices particularly increased for cereals including dry maize, wheat, sorghum and corn flour; vegetables like green peas, tomatoes, carrot, onion, other food items such as dry beans and yams as well as prices for fruits including avocado, lemon, banana, mango and pineapple. Within transport category, prices increased for spare parts of vehicles, bicycle and motorcycle, taxi fees, vehicle lubricant and the price of air transport, among others.

On monthly basis, the general consumer price index rose by 0.9% in August 2019, underpinned by rising price index of food and non-alcoholic beverages (+2.5%). Food prices increased in general, much more for locally produced (+3.3%) due to low market supply following the dry weather while the price index decelerated by 0.1% for imported food and non-alcoholic beverages. Between July and August 2019, energy price index was slightly up (+0.4%) and index for fresh food rose by 4.5%. Excluding fresh food and energy, inflation was 0.1% month-to-month compared to 0.2% the previous month.

In summary, annual headline inflation stood at 2.3% in August from 1.9% in July 2019. Excluding fresh product and energy, inflation was unchanged at 2.6% in August similar to July 2019.