Rising food prices drive May inflation to 14.8pc

Rising food prices drive May inflation to 14.8pc
Food accounts for 27 per cent share of the basket of items used to gauge change in the cost of living, followed by utilities and transport. Courtesy Photo

Food inflation hit record rise by 24.2 per cent in May, signaling tough times for low and middle income consumers already contending with effects of the recent spikes in fuel costs.

Rwanda’s National Institute of Statistics (NISR) report shows costs of food and non-alcoholic beverages, which had increased by 15.7 per cent and 5.5 per cent on annual and monthly basis in April again rose by 24.2 per cent and 5 per cent correspondingly in May 2022.

Food accounts for 27 per cent share of the basket of items used to gauge change in the cost of living, followed by utilities and transport with 21 per cent and 12 per cent weight respectively.

Their cost rise piles pressure on consumers already contending with a fifth consecutive rise in fuel costs effective June 10.

READ: Prices at the pump soar, yet again

For instance, there has also been a significant annual rise in costs of the “Energy” by 17.6 percent with a 1.3 per cent decrease on monthly basis, while prices of restaurants and hotels services rose by 14.3 per cent and 0.1 percent on annual change and monthly basis respectively.

The May inflation report data also show “local goods” increased by 11.5 per cent on annual change and 1.6 percent on monthly basis, while prices of the “imported products” increased by 15.9 percent on annual basis and 2.8 percent on monthly change.

‘Housing, water, electricity, gas and other fuels’ increased by 8 per cent on annual basis with 0.3 per cent on monthly basis, while transport increased by 7.7 percent on annual basis and increased by 1 percent on monthly basis.

The urban inflation shoot by 12.6 percent on annual basis  between May 2022 and May 2021 and increased by 1.9 percent on monthly basis.

The rural inflation in May rose by 16.4 percent on annual basis and 2.3 percent on monthly basis, according NISR data. This saw the overall inflation rise by 14.8 per cent on annual basis and 2.1 percent on monthly change.