Rwanda’s market prices rise by 2.5% in September 2024

In September 2024, Rwanda’s market prices increased by 2.5% compared to the same month in 2023, reflecting a moderate rise compared to the trends observed throughout 2024. This increase, although smaller than previous months, signals ongoing inflationary pressures in certain sectors of the economy, particularly in housing and transportation.

The National Institute of Statistics of Rwanda (NISR) reported that the primary contributors to the price rise in September were housing, water, electricity, gas, and other fuels, which experienced a 4% increase. Additionally, transportation costs surged by 18.2%, placing significant upward pressure on the overall consumer price index (CPI). These sectors continue to drive inflation, reflecting increased demand and higher costs associated with energy and fuel.

When comparing September 2024 to September 2023, prices for goods excluding food and energy (core inflation) rose by 5%. This indicates that essential non-food items such as household goods and services have also seen noticeable price increases.

In the month-to-month comparison between September and August 2024, prices rose by 1.2%, with food and non-alcoholic beverages increasing by 2.5%. The education sector saw a significant price jump of 8.2%, reflecting the start of the new school year and associated costs. These price increases suggest that families are facing higher expenses related to both everyday living and education.

Throughout 2024, inflation has been a persistent challenge, with price hikes in various sectors. In August 2024, the overall price increase stood at 5%, while July saw a 4.9% rise. Earlier in the year, prices increased by 5% in June, 5.8% in May, 4.5% in April, 4.2% in March, 4.9% in February, and 5% in January.

September 2024 marked the first time in over two years that inflation had slowed to this level, offering a glimpse of hope for consumers. The decline from the higher inflation rates earlier in the year suggests that some sectors, particularly those outside of housing and transport, may be stabilizing.

The moderation in price increases is notable, but inflation remains a concern, particularly as essential services such as housing and transport continue to rise at significant rates. With the global economic landscape influencing local markets, it remains to be seen whether this downward trend will continue in the coming months.