The report shows that prices increased 0.9 percent in February compared with January 2026, indicating continued pressure on the cost of living as households face higher spending on key goods and services. On average, inflation stood at 7.4 percent over the past 12 months, reflecting a steady rise in consumer prices across the economy.
Several sectors recorded notable price increases over the past year. Housing, water, electricity, gas and other fuels, which constitute a large share of the consumer basket, rose by 12.3 percent, while restaurants and hotels registered a sharp 19.9 percent increase. Prices for alcoholic beverages and tobacco also climbed significantly, increasing by 18.3 percent, while transport costs rose by 8.6 percent.
Food prices, which account for a large share of household spending, increased more moderately compared with other sectors. The category of food and non-alcoholic beverages rose by 4.6 percent annually, with bread and cereals increasing by 11.7 percent and meat by 9 percent, while vegetable prices recorded a smaller annual rise of 3.4 percent.
The report also points to sharp increases in the health sector, where prices surged by 71.1 percent over the past year, though the category represents a relatively small share of the consumer basket.
Meanwhile, core inflation, which excludes volatile items such as fresh food and energy, rose by 9.6 percent year-on-year, suggesting that underlying price pressures remain. On a monthly basis, core inflation increased by 0.9 percent in February.
Energy prices also played a role in the rise in consumer costs, increasing by 20 percent annually and 2.6 percent compared with January, reflecting higher fuel and electricity expenses.
The CPI measures the average change over time in prices paid by households for a basket of goods and services. The index is calculated using data from more than 1,600 products collected monthly from markets, shops, hospitals and other service providers across the country.
Economists closely watch inflation trends as they influence purchasing power, household spending and policy decisions. In the month under review, the National Bank of Rwanda (NBR) raised its key interest rate by 50 basis points to 7.25 percent in a move aimed at curbing rising inflation.
Inflation in Rwanda increased to 8.9 percent in January 2026, up from 8.0 percent in December 2025, exceeding the Central Bank’s target range of 2–8 percent.
The rise, Central Bank Governor Soraya Hakuziyaremye said, was driven largely by higher energy costs, electricity tariffs, fuel prices, and supply constraints on fresh food, particularly vegetables affected by below-normal rainfall.
“The Monetary Policy Committee has decided to increase the Central Bank Rate to 7.25 percent to limit second-round effects of recent price increases and support a timely return of inflation to the target range,” she stated.
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