Kigali [Rwanda], April 12: Rwanda's urban inflation rose sharply in March 2025, with the Consumer Price Index (CPI) increasing by 6.5 percent compared to the same period in 2024, according to a report released Friday by the National Institute of Statistics of Rwanda (NISR).
On a monthly basis, urban inflation increased by 1.3 percent between February and March 2025, the report said. The annual average inflation rate between March 2025 and March 2024 was 5.3 percent, highlighting sustained upward pressure on consumer prices.
Key contributors to the inflation surge in urban areas include transport costs, which spiked by 12 percent; restaurants and hotels, which rose by a significant 14.1 percent; and food and non-alcoholic beverages, which increased by 6.4 percent year-on-year, according to the report.
Outside urban centers, rural inflation also rose, though at a slower pace. The Rural CPI increased by 3.9 percent year-on-year in March 2025 and by 2.2 percent on a monthly basis. At the national level, the overall CPI rose by 4.9 percent annually and 1.9 percent monthly, indicating a countrywide trend of increasing consumer prices, according to the report.
The underlying inflation rate, which excludes fresh food and energy to reflect core inflation, grew by 5.8 percent year-on-year and 0.7 percent month-on-month. The annual average underlying inflation rate was also recorded at 5.8 percent.
The CPI is a key measure used to track the average change in prices of a standardized basket of goods and services purchased by households. Rwanda's CPI is compiled using a Modified Laspeyres formula, with data collected from both urban and rural households across the country.
Each month, more than 40,000 price observations are collected, including 29,482 from urban areas and 10,744 from rural areas, covering goods and services from markets, shops, hospitals, schools and other key locations. The current CPI structure is based on the Household Living Conditions Survey conducted in 2013-2014 with a representative sample of 14,419 households.
As inflation remains a top concern, the latest figures underscore the need for close monitoring of price movements, particularly in transport, food and hospitality sectors, which have a significant impact on household spending and cost of living.
Rwanda's economy recorded an 8.9 percent growth in 2024, supported by strong performances in the services, industry and agriculture sectors, according to the latest data from the NISR.
The economy is projected to maintain robust growth, with forecasts indicating a 7 percent expansion in both 2025 and 2026, according to the latest data from the National Bank of Rwanda.
Source: Xinhua News Agency
