Rwanda registers negative inflation

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Positive economy outlook for Rwanda - World Bank

Rwanda is one of only two countries in the Common Market of Eastern and Southern Africa (Comesa) bloc that have registered negative inflation with the other being Zimbabwe according to a newly   released IMF report.

Rwanda’s inflation figure as of June 2015 stood at -2. 7%, a figure attributed to a stable growing economy despite an increase in the dollar rate.

The year-on-year inflation rate in the Comesa region as measured by the Harmonised Consumer Price Index (HCPI) stood at 9. 2% for the month of June 2015, down from 10.9% registered in May 2015.

Burundi recorded inflation of 8.9%, Democratic Republic of Congo (0.6%), Egypt (10.8%), Ethiopia (12.2%), Kenya (1.9%), Madagascar (7.8%), Malawi (23.5%), Mauritius (0%), Seychelles (5.5%) and Sudan (21.9%). Swaziland’s annual inflation was 5. 3%, Uganda (5.4%) and Zambia (7%).

Vince Musewe, an economist said that Rwanda as a landlocked country and it costs more to deliver goods in Rwanda as one of the reasons for the delay.

“Goods take months to be delivered and the cost for the delivery of goods is still high. There must be an adjustment of prices,” he said.

The rate stood at 13. 0% during the same period in 2014.

The month-on-month inflation rate in the Comesa as measured by HCPI stood at -0.1% for the month of June 2015, down from 0.8% registered in May 2015. It was 1.5% in June in 2014.

The HCPI consists of food and non-alcoholic beverages (9.6%), alcoholic beverages and tobacco (24.6%), clothing and footwear (7.9%), housing, water, electricity, gas and other fuels (8.7%), furnishings, household equipment and routine household maintenance (2.8%), health (1.3%), transport (4.9%), communication (2.7%), recreation and culture (18.7%), education (19.6%), restaurants and hotels (12.9%) with miscellaneous goods and services accounting for 2.7%.

 

About the author

Olive Ndaka is the Junior Editor for RwandaEye. An investor and young entrepreneur, she is a quick learner and has contributed many articles for RwandaEye in Kinyarwanda.

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