Rwanda began 2026 facing stronger cost of living pressures, with inflation climbing to 8.9% in January, driven by sharp increases in health care, housing-related expenses, energy, hospitality services and selected food items, new figures from the National Institute of Statistics of Rwanda (NISR) show.
The rise marks a clear acceleration in prices compared to the end of last year. On a month-on-month basis, urban consumer prices increased by 1.3% from December 2025, signalling renewed inflation momentum at the start of the year.
The urban Consumer Price Index (CPI), which serves as the main reference for monetary policy, captured the bulk of these pressures.
Data from NISR indicate that inflation is becoming more widespread across the economy.
Health services stood out as the fastest-rising category, with prices jumping by 71.1% compared to January last year.
Service-oriented sectors also recorded strong gains, as prices in restaurants and hotels rose by 19.2%, while alcoholic beverages and tobacco increased by 15.6 %, reflecting higher operating and regulatory costs.
Food prices, while still relatively contained, edged higher and showed signs of building pressure.
Food and non-alcoholic beverages were up 5.3% year-on-year, supported by monthly increases in meat, vegetables and dairy products.
A slight decline in bread and cereals prices helped cushion the overall rise in food inflation.
Rising energy and housing costs continued to shape the inflation landscape.
The energy index increased by 17.8% year-on-year, while housing, water, electricity, gas and other fuels rose by 10.5%, pointing to higher utility and fuel expenses for households.
Imported goods inflation reached 9.6%, outpacing the 8.7 %increase in locally produced goods and highlighting the impact of external price shocks.
Transport costs rose by 8.6%, while clothing and footwear prices increased by 5.5%, adding further pressure on household budgets.
Underlying price trends remained elevated.
Core inflation, which excludes fresh food and energy and is closely monitored as a measure of persistent inflation, stood at 8.9% year-on-year, with a monthly increase of 0.8%.
This suggests that price increases are no longer driven solely by volatile items but are spreading across the economy.
Looking beyond urban areas, national inflation which combines both urban and rural indices stood at 7.5% in January.
Rural inflation remained lower at 6.5%, with prices increasing marginally by 0.1% on a monthly basis, compared with a much sharper rise in urban centres.
Over the 12 months to January 2026, the annual average inflation rate was 7.2%, while average core inflation stood at 7.4%, both slightly below the latest headline reading.
NISR compiles inflation data from more than 40,000 price observations each month, covering 1,622 goods and services across urban and rural markets nationwide.
While national figures provide a broad picture, the urban CPI remains the primary gauge for tracking inflation trends and informing Rwanda’s monetary policy stance.
By Andrew Shyaka
