2011.01.1706:00:00UTC+00Rwanda's Inflation Rises In December

Inflation in Rwanda accelerated for the second month running in December, the National Institute of Statistics said Monday.

The headline all urban consumer price index increased 0.23% year-on-year in December, faster than the 0.18% rise in the previous month.

This takes the general inflation rate by an annual average to 2.3% during December, the statistical office said. On a monthly basis, prices were down 1.08% in December.

The underlying inflation rate, excluding fresh food and energy, was 0.08% month-on-month and was 0.15% compared to the previous year. The average rate of inflation for the January to December period was 1.5%.

Consumer prices of food and beverages fell 2.69% year-on-year and that of alcoholic beverages rose 4.06%. Clothing and footwear prices increased 1.59% annually and transport charges grew 4.07%.

The National Bank of Rwanda had forecast inflation to be 1.4% in December, rising to 4% in March next year. The International Monetary Fund expects inflation to climb to 6% this year from 4.6% last year.

During its previous monetary policy meeting in November, the central bank reduced the key policy rate to 6% from 7%. The bank said that this rate would be in force during the remaining part of 2010 and the first quarter of this year.