Rwanda’s inflation is climbing back toward levels last seen during the 2022–2023 price crisis, when annual headline inflation soared past 19 percent before crashing to under 2 percent in 2024.
For the seventh month in role, prices of goods and services in Rwanda have accelerated,, meaning the cost of living is not just high, it is rising faster each month.
Inflation has climbed to 15.7 percent in August 2026, up from 14.5 percent in July, according to new data released by the National Institute of Statistics of Rwanda (NISR).
“Rwanda’s inflation is climbing back toward levels last seen during the 2022–2023 price crisis, when annual inflation soared past 19 percent before crashing to under 2 percent in 2024.”
NISR figures released on September 10, 2026 show inflation has been on a steady climb through 2026: from 8.9 percent in January, to 14.5 percent in July, to 15.7 percent in August.
The rise follows a sharp swing in recent years, when it spiked above 19 percent in 2023, and fell to fewer than 2 percent in 2024, then began climbing again through 2025 and into 2026.
Rwanda Urban CPI Inflation Trend – 2026 (Jan–Aug)
Illustrating the upward trajectory of urban inflation across the first eight months of the year.
Energy prices are the standout figure in this month’s report, rising 45.4 percent from a year earlier, by far the biggest increase among the categories tracked by NISR.
Transport costs rose 24.2 percent, while housing, water, electricity and gas increased 20.4 percent.
Petrol prices had already begun climbing earlier in the year, rising from Rwf1,989 to Rwf2,303 a litre in April 2026. That increase helps explain the sharp rise now showing up in the annual energy figure.
Read More: RURA Raises Fuel Prices, Transport Fares as Motorists Report Shortages at the Pump
Food and non-alcoholic beverages rose 16.3 percent over the year. Fresh produce, vegetables and fruit were also under pressure, rising 5.8 percent in a single month, the biggest monthly increase among the categories tracked by NISR.
In Kayonza District, market seller Eric Uwamungu said customers are already feeling the difference.
Cooking oil, he said, has risen from Rwf900 to Rwf1,200. Beans went from Rwf800–900 to about Rwf1,000 a kilogram, while plantains have also become more expensive as the dry season cuts into local supplies. Sugar is among the few staples whose price has remained fairly steady, at between Rwf1,500 and Rwf1,600.
For small retailers like Uwamungu, the pressure starts further up the supply chain.
“Those of us buying from wholesalers are feeling the squeeze because their prices went up too,” he said. “Wholesalers have to protect their margins, and they’re mostly passing down the higher transport costs caused by recent fuel price hikes at the pump.”
Prices of locally produced goods rose 17.4 percent over the year, compared with 10.8 percent for imported goods. That is notable because when a currency weakens, imported goods often feel the pressure first. The latest figures instead point to rising costs within Rwanda’s own food and production chains, rather than global prices alone.
Even after excluding fresh food and energy, two of the most volatile categories, underlying inflation stood at 11.5 percent. That suggests the increase is not limited entirely to fuel and food, although those categories are pushing the headline figure higher.
The central bank has already responded to the inflation pressure. On August 26, it raised its key interest rate to 8.75 percent, the third increase this year and the highest level since 2009.
Governor Soraya Hakuziyaremye said the rate increase was intended to curb inflationary pressures and help bring inflation back towards the bank’s target range.
The rate had also been raised in February and May, bringing the total increase since November 2025 to 175 basis points.
National Bank of Rwanda: 2026 MPC Rate Decisions
Tracking the Central Bank Rate (CBR) tightening cycle implemented in response to mounting inflationary pressures.
| Meeting Date | New CBR | Previous | Adjustment | Primary Context |
|---|---|---|---|---|
| Feb 18, 2026 | 7.25% | 6.75% | +50 bps | Raised to counter early-year headline inflation reaching 8.9%. |
| May 21, 2026 | 8.25% | 7.25% | +100 bps | Aggressively hiked as inflation spiked into double digits (13.0%). |
| Aug 26, 2026 | 8.75% | 8.25% | +50 bps | Lifted further as inflation accelerated to 14.5% in July. |
The Central Bank Rate (BNR) has been raised by a cumulative 175 basis points since the tightening cycle began, despite aggressive rate hikes, Rwanda’s broader economy has remained robust, recording a strong 10% year-on-year GDP growth rate in the first quarter of 2026.
National Bank of Rwanda: Central Bank Rate (CBR) Trend
Visualizing the monetary policy tightening trajectory across 2025 and 2026.
BNR projects that overall inflation will average 13.1% for the full year of 2026 before significantly cooling down to 7.9% in 2027 as it re-enters the target boundary.
The bank expected inflation to ease gradually, with its earlier forecast putting average inflation at 13.1 percent for 2026 and about 7.9 percent in 2027.
