The urban index, which serves as the headline measure for monetary policy, rose 0.9 percent on a monthly basis compared to June 2026. The annual average inflation rate between July 2026 and July 2025 stood at 9.9 percent, while the annual average underlying inflation rate was 10 percent.
Nationally, the overall Rwanda CPI increased by 13.8 percent year-on-year and 0.3 percent month-on-month. Rural inflation rose 13.3 percent annually but eased 0.2 percent from June, pulled down by a 3.6 percent monthly drop in rural housing, water, electricity, gas and other fuel costs.
Transport and housing costs continue to lead the increase. Urban transport prices jumped 24.2 percent year-on-year, while housing, water, electricity, gas and other fuels rose 21 percent. Transport costs have been under pressure since February, linked to disruptions in oil flows through the Strait of Hormuz amid the Middle East conflict.
Meat prices surged 33.8 percent annually and spiked 17.8 percent in a single month, while vegetables were up 19.8 percent year-on-year, though they eased 0.8 percent from June. The sharp monthly rise in meat prices has been linked to strict livestock movement restrictions and quarantine measures imposed to contain Rift Valley Fever, a contagious animal disease that has significantly reduced the number of cattle, goats and sheep reaching Kigali’s abattoirs.
Food and non-alcoholic beverages, the largest component of the urban basket at 27 percent weight, increased 13.1 percent annually and 1.5 percent monthly, making it the biggest driver of July’s monthly rise. Restaurants and hotels rose 14.2 percent year-on-year.
NISR’s core index, which strips out fresh food and energy prices to capture underlying price trends, rose 11.4 percent year-on-year and 0.6 percent month-on-month, up from 5.8 percent a year earlier, signalling that price pressures have broadened beyond volatile categories.
The energy index rose sharply, up 44.5 percent annually, while the local goods index increased 15.8 percent and the imported goods index rose 10.7 percent over the same period.
NISR’s CPI is based on a basket of 1,622 products, with more than 29,482 prices collected each month in urban areas and 10,744 in rural areas. The urban CPI serves as the headline index for monetary policy purposes.
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