Rwanda’s inflation rate now stands at 10.8 percent, manifesting serious hurdles to the overall economic performance, according to the Rwanda National Bank.
Thomas Kigabo, the bank official in charge of economic monitoring, told a press conference in Kigali that the inflation is due to the increase in global oil prices, global food crisis, and the Kenyan post-election crisis.
“The sudden price increase of imported commodities like oil and food stuffs to a rate of about 36 percent, are some of the serious factors that have lead to the rise in the country’s inflation to about 10.8 percent,†he said.
The post-election crisis in Kenya early this year required Rwanda to change the route for its commodities from the port of Mombasa to that Dar- as- Salaam in Tanzania, which was “very costly and affected the final commodity pricingâ€.
Kigabo called for increase in food production and improved food storage facilities to overcome the increase in inflation and decline in economic performance.
The Rwandan ministry of finance and economic planning projects this year’s economic growth rate to be at about 8 percent but experts say it is likely to be at 7 percent and only if there are strong investments in the services and agricultural sectors.
Source African Press Agency
