January 2019 CPI inflation
In January 2019, Rwanda Urban Consumer Price Index increased by 1.0 percent year-on-year less fast than 1.1 percent achieved in December 2018. Month-to-month, urban consumer price index remained unchanged.
On monthly basis, downward pressures coming from the decline in prices of food and non-alcoholic beverages (-0.1 percent) and transport (-1.1 percent) offset rising pressures from prices of water, electricity, gas and other fuels (+0.3 percent) together with prices of clothing and foot wear (+1.1 percent).
On annual basis, inflationary pressures derived from housing, water, electricity, gas and other fuels (+2.6 percent after 2.5 percent in December 2018) transport (+8.2 percent compared to 9.5 percent the previous month) partly offset by deflationary pressures from food and non-alcoholic beverages (-4.3 percent compared to -4.1 percent in December 2018). Within transport, price went up for cars and minibus, bicycles, spare parts for vehicles, diesel, fuel, taxi fees, air transport cost among others.
With regard to housing, water, electricity, gas and other fuels, drivers of inflation included, building repair supplies and labor, wood for cooking, kerosene, gas, construction wood, charcoal and actual rent among others. In contrast, prices of food and non-alcoholic beverages fell by 4.3 percent in January 2019 and by 4.1 percent in December 2018, drawn by a drop in prices of banana for cooking and banana for beer, sorghum, fruits, milling flours, vegetables, among others. Prices plunged for almost all food items on the plenty supply.
Looking at the origin, in January 2019, annual inflation slowed down for imported goods standing at 2.7 percent from 3.4 percent in December 2018. Inflation on locally produced goods stood at 0.5 percent, unchanged from December 2018. Prices rose by 4.7 percent for energy the lowest in sixteen months from 6.8 percent in December 2018. Fresh food prices kept falling (-2.7 percent compared to -2.5 percent in December 2018) as markets remained well supplied. Excluding fresh food and energy, inflation was 1.5 percent against 1.4 percent recorded in December 2018.