Rwanda’s inflation rate has reached an all-time high due to the escalating food prices, according to the recent data released by the government. The Consumer Price Index (CPI), which is the primary indicator of inflation, rose to 20.8 percent year on year in February 2023, up from 20.7 percent in January 2023.
The data further reveals that food and non-alcoholic beverages saw a surge of 42.4 percent on an annual basis and 4.7 percent on a monthly basis in February 2023.
Additionally, the cost of housing, water, electricity, gas, and other fuels rose by 7.1 percent annually and 0.9 percent monthly. Meanwhile, transport costs increased by 12.1 percent yearly and decreased by 0.1 percent monthly.
The data also highlights that local products saw a year-on-year increase of 21.9 percent and a monthly increase of 2.3 percent. Imported products, on the other hand, saw a yearly increase of 17.5 percent and a monthly increase of 0.4 percent.
Fresh products saw a year-on-year increase of 48.7 percent and a monthly increase of 7.3 percent. Energy costs increased by 15.4 percent yearly and 1.2 percent monthly.
The general index excluding fresh products and energy rose by 14.4 percent yearly and 0.3 percent monthly, the high inflation rate is a major concern for the government as it has a significant impact on the country’s economy and the citizens’ purchasing power.