Rwanda’s Urban Inflation Rose to 13.6% in June

Andrew shyaka
3 Min Read

Rwanda’s annual urban inflation accelerated to 13.6% in June 2026, up from 12.9% in May, as rising transport, housing and healthcare costs continued to drive consumer prices higher, according to the latest Consumer Price Index (CPI) released by the National Institute of Statistics of Rwanda (NISR).

The report shows that the Urban Consumer Price Index (CPI)—the country’s key measure of inflation used by the National Bank of Rwanda (BNR) to guide monetary policy—increased by 0.4% on a monthly basis. Meanwhile, the annual average inflation rate for the 12 months ending in June stood at 9.3%.

Transport remained one of the strongest contributors to inflation, with prices rising 26.0% year-on-year and 1.2% compared with May, reflecting sustained pressure from higher fuel prices linked to the ongoing Middle East crisis.

Housing-related expenses also continued to weigh heavily on household budgets.

Prices for housing, water, electricity, gas and other fuels increased 20.5% annually and 0.7% month-on-month, highlighting persistent cost pressures in essential services.

Healthcare recorded the sharpest annual increase among major consumer spending categories, with prices soaring 71.2% compared with June 2025.

Restaurants and hotels became 15.9% more expensive, while prices for alcoholic beverages, tobacco and narcotics rose 13.0% over the same period.

Food and non-alcoholic beverages—the largest component of household expenditure—increased 7.5% year-on-year, although the category declined 0.3% from May.

Within the category, vegetable prices climbed 13.1%, matching the increase recorded for meat, while non-alcoholic beverages rose 9.4%.

Other key inflation indicators also pointed to sustained price pressures. The Energy Index rose 44.8% annually, while the Local Goods Index increased 14.7%, outpacing the 10.5% rise recorded for imported goods.

Fresh products were 9.1% more expensive than a year earlier.

Core inflation, which excludes fresh food and energy prices, stood at 12.3%, indicating that underlying inflationary pressures remain widespread across the economy.

Outside urban areas, annual inflation reached 12.1%, with rural consumer prices increasing 0.4% over the previous month. Nationally, the Overall Rwanda Consumer Price Index rose 12.7% compared with June 2025 and also increased 0.4% on a monthly basis.

The NISR compiles the Consumer Price Index using prices collected for approximately 1,622 products across Rwanda.

Each month, the institute gathers more than 29,482 price observations in urban areas and 10,744 observations in rural areas from markets, retail outlets, schools, hospitals and other service providers.

The Urban CPI remains the principal inflation indicator used by the National Bank of Rwanda to assess price stability and guide monetary policy as the country continues to grapple with elevated inflationary pressures.

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