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Home Economy

Inflation Rises to 7.3% in July

by Jejje Muhinde
11 August 2025
in Economy
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Muslims brace for a difficult Ramadan as food prices soar
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The Consumer Price Index (CPI), the country’s main measure of inflation, rose by 7.3 percent year-on-year in July 2025, up from 7 percent in June, according to figures from the National Institute of Statistics of Rwanda (NISR).

The latest data released by NISR on August 10, 2025 show’s mixed trends across different sectors. The “Food and non-alcoholic beverages” category increased by 6.4 percent compared to July 2024 but saw a 3.5 percent decline on a monthly basis, reflecting seasonal fluctuations in food prices. In contrast, “Alcoholic beverages, tobacco and narcotics” rose sharply by 12.2 percent year-on-year and 3.6 percent month-on-month.

Health services registered the most dramatic change, with a staggering 70.7 percent annual increase and a 69.6 percent jump from June to July 2025. The transport sector posted a 7 percent annual rise and a 2.7 percent monthly increase, while “Restaurants and Hotels” recorded a 20.1 percent rise year-on-year and 2.1 percent month-on-month, indicating sustained pressure from hospitality-related costs.

When broken down by product origin, locally produced goods rose by 6.7 percent annually but edged down by 0.3 percent compared to June, while imported products climbed 9.3 percent annually and 1.4 percent monthly.

Fresh products rose by 7.4 percent annually but dropped 4.4 percent month-on-month, suggesting temporary relief for consumers in seasonal produce. Energy prices increased by 3 percent year-on-year and 1.7 percent month-on-month.

The “general index excluding fresh products and energy” — a key measure of core inflation — increased by 7.7 percent annually and 1.5 percent on a monthly basis.

Economists note that while overall inflation remains below double digits, the sharp spikes in specific categories like health and hospitality could continue to strain household budgets in the coming months. The NISR report attributes some of these shifts to both domestic market pressures and changes in import prices.

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Jejje Muhinde

Jejje Muhinde

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