Slight decline in food prices ease pressure on economy

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The slight decline in food prices of most commodities that make up the food basket has eased the inflation levels, providing a relief from the pressures that were mounting on the economy.

According to a price survey carried out on Monday in Kigali, commodities such a vegetables, maize, Irish potatoes, fruits like passion, oranges and papaws as well as pineapples have recorded slight decline in their prices in the two months of January and February, 2016.

“I think this is because we have been getting enough supply since the beginning of the year,” said Clementine Uwizeyimana, a trader in Kimironko market told this website on Monday.

 The vegetables which are a factor in calculating the inflation shed off Rwf 50 to 60 francs as its supply continued to grow since December, 2015 given the good conditions in the swamps where they are mostly grown.

Other commodities shed off atleast Rwf 75, Rwf 90, Rwf 120, Rwf 150, Rwf 100 for maize, Irish potatoes, fruits like passion, oranges and papaws respectively.

Central bank recently said it had recorded a decline in inflation which it attributed to decline in prices of food thus making consumers able to manage purchasing a food basket required for their households.

“Since December, 2015 headline inflation has remain subdued below the medium term objective of 5 percent,” said John Rwangombwa, governor of the Central Bank.

The bank says that   with the decline in prices notably vegetables inflation reduced slightly to 4.4 percent in February up from 4.5 percent in January and December and 4.8 percent in November, 2015.

There optimism, Central bank says of seeing a more decline in inflation levels in the month of March, 2016 banking on the good conditions that are triggering increased production.

 

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.

More posts by | Visit the site of Ndaka

 

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