Abigail Muhire, who works in Kigali but has a family in Musanze District, has to spend more of his income to be able to travel by transport means.
He is one of the passengers who are feeling the impact of public transport fees that took effect on March 16, which has meant an increase in fares for passengers. They were announced by the Rwanda Utilities Regulatory Authority (RURA) on March 12.
For instance, a passenger has to pay Rwf891 or 46 per cent more on public bus transport to travel from Nyabugogo taxi park (in Kigali) to Musanze taxi park (in Northern Province), because the journey used to cost Rwf1,930 but the fare rose to Rwf2,821 as a result of the fee change.
"I used to spend Rwf5,000 to travel from Kigali to Musanze and back, but now that is not possible because of an increase in public transport fare," Muhire, who works in Kigali, but has a family in Musanze District, told The New Times.
Rwanda's Consumer Price Index (CPI), the main gauge of inflation, increased by 4.5 per cent in April 2024 compared to the same month of 2023, with transport sector topping the underlying factors for the recorded increment as it contributed 2.7 percentage points to it - or more than a half.
The index for April is slightly higher than 4.2 per cent that was registered in March.
This is according to a Consumer Price Index (CPI) publication of April 2024, which was released on May 10, by the National Institute of Statists of Rwanda (NISR).
The index indicated that, on an annual basis, food and non-alcoholic beverages increased by 1.6 per cent and transport increased by 24.2 per cent.
On a monthly basis, food and non-alcoholic beverages increased by 1.3 per cent and transport increased by 8.2 per cent.
"The increase in transport prices follows the recent adjustment of passenger transport prices subsequent to the government's cessation of transport ticket subsidies, as well as adjustments reflecting changes in input prices within the transportation sector," the Director of Economic Statistics at NISR, Jean Claude Mwizerwa, told The New Times.
Inflation still normal, within check
Meanwhile, Mwizerwa observed that as long as the inflation is below 5 per cent, it is considered normal.
"Moderate inflation is actually beneficial for the economic growth, as it stimulates the production and increases the demand for investment," he said.
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According to the National Bank of Rwanda (NBR), monetary policy shall maintain price stability by keeping headline consumer price inflation within the band of 2 per cent and 8 per cent, with a focus on having it close to 5 per cent in the medium term.
Other data related to April CPI
The underlying inflation rate (excluding fresh food and energy) rose by 6.6 per cent when compared to April 2023 and it increased by 1.8 per cent compared to March 2024.
The data show that, on annual basis, the local goods index increased by 2.5 per cent, the imported goods index rose by 11 per cent, and the fresh products index decreased by 1.5 per cent.
The energy index, on the other hand, grew by 4 per cent and the core index - or the general index excluding fresh products and energy - increased by 6.6 per cent.
On monthly basis, the local goods index went up by 1 per cent, the imported goods index rose by 2.8 per cent, the fresh products index increased by 0.8 per cent, the energy index decreased by 0.2 per cent and the core index increased by 1.8 per cent.
It pointed out that Urban CPI is calculated based on approximately 1,622 products in 12 urban centres of Rwanda.
Meanwhile, the publication showed that rural CPI decreased by 3.5 per cent on annual basis, and increased by 0.1 per cent on monthly basis, while overall, Rwanda CPI decreased by 0.5 per cent on annual basis, and it gained by 0.6 per cent on monthly basis.
