August 2018 CPI inflation


 

In August 2018, Rwanda consumer price index rose by 2.1% year-on-year and by 0.4% month-to-month against 2.1% and -1.0% respectively in July 2018. Excluding food and energy, annual inflation was 1.6% after 1.4% recorded in July 2018.

On annual basis, inflation was mostly driven by rising prices of transport, housing, water, electricity, gas and other fuels which made the largest contribution to overall inflation over the twelve months. Year-on-year, inflation was 10.4% for transport mostly driven by increasing prices of cars and minibus (+14.9%), motorcycle (+11.4%), bicycle (+15.1%), diesel (+16.4%), fuels for generator (15.5%), petrol (+14.4%) and taxi fees (+12.5%) among others. Prices went up by 3.7% for housing, water, electricity, gas and other fuels, bolstered by prices of wood for cooking (+16.5%), charcoal (9.8%), kerosene (11.3%), building repair supplies (+5.4%), imputed (2.3%) and actual rent (3.2%) respectively. These upward pressures were partly offset by the declines in prices of food and non-alcoholic beverages of 0.8% and 0.7% respectively in August and July 2018.

Coming to CPI origin, inflation stood at 4.9% for imported products and 1.3% for domestically produced items from 4.7% and 1.2% respectively in July 2018. In August 2018, price index went up by 1.2% for fresh food and by 11.4% for energy. Excluding food and energy, consumer price index rose by 1.6% faster than 1.4% registered in July 2018.