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National Bank of Rwanda projects inflation to average at about 4% by the end of 2017

Monthly report by the National Institute of Statistics (NISR) on Rwanda’s consumer Price Index has indicated an increase by 3.2 percent in August 2017. The main gauge of inflation has also been stated to be lower than 6.4 per cent registered in the same era a year ago.

This increase as always was largely attributed to the rising prices of food and non-alcoholic beverages, which rose by 6.9 percent.

According to the report, the monthly inflation increased by 0.2 percent in August 2017.

It means the situation has eased, manifesting what many experts had predicted at the beginning of the year.

Overall, Rwanda’s underlying inflation rate (excluding fresh food and energy) decreased by 0.1 percent when compared to July 2017 and increased by 3.2 percent when compared to August 2016.

This puts the country’s annual average rate at 6.3 percent, said Lucie Mutetijabiro, the NISR price statistics and research unit team leader.

Globally, inflation is projected to reach 3.0 percent in 2017 from 2.8 percent registered in 2016.

In Rwanda, the National Bank of Rwanda (BNR) estimates an uptick in global inflation and the progressive increment in international oil prices may exert mild inflationary pressure on the Rwandan economy.

However, according John Rwangombwa, the governor of the Central Bank, the improvement in global demand, in line with good economic performance around the world, is expected to positively affect the Rwandan economy.

“This coupled with the anticipated increase in the prices of metals and minerals may lead to the increase in Rwanda’s export revenues and help to ease inflation and exchange rate pressures.”

The national bank has already projected inflation to average at about 4 percent by the end of the year.

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