Supply shortfall pushes up food prices

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The supply shortfalls are also attributed to higher transport costs to Kigali city.

The supply shortfalls are also attributed to higher transport costs to Kigali city.

Consumers in Kigali will continue to dig deep in their pockets in May, 2016 to buy the same food basket of the previous months.

This is as a result of a further increase in prices of food across markets of Kigali which has been rising since the beginning of this year.

In a mini survey in the four main markets of the city, Irish potatoes increased by Rwf 20 to Rwf 300, vegetables increased by Rwf 50 to Rwf 200, milled ground nuts increased by Rwf 200 from Rwf 1000 Rwf 1200 a kilo, with all fruits recording a rise in their prices.

Moreover, the national institute of statistics in Rwanda indicated arise in food prices during the first five months of this year which continued to push inflation higher with inflation in May recorded at 4.6 percent.

The monthly CPI increased by 0.5 percent in May 2016, mostly driven by prices of “Food and non- alcoholic beverages”, “Housing, water, electricity, gas and other fuels” and “Transport”,” said Lucie Mutetijabiro, statistician at Natioanal Insititute of Statistics of Rwanda.

The increase according to traders who talked to this website on Thursday is due to shortage in supply of food which   has been persistent since the beginning of the forts half of this year.

“Suppliers are reducing the quantities every week which makes the demand increase,” said Paccy Uwiringiyimana, a fresh foods trader in Kimironko market, “and when we buy food at a high price we also increase to get profits,” she added.

In other prices, fresh cassava increased by Rwf 100,sweet bananas( camara type) increased by Rwf 300 to  Rwf 1000 a big bunch, with big bananas(bogoya) increased by 500 to Rwf 2000, cassava flour , sweet  potatoes, onions  remained constant after an increase  last  month.

 

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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