In November 2017, The National Bank of Rwanda issued monthly Consumer Price Index where was a 2.2 percent increase recorded for the month of November comparing to previous months of October and September with respective increase of 3.8 and 3.6. it was noted that a decrease in food price was at heart of those figures for November 2017.
Inflation had lowered to 2.2 percent in November 2017 compared to 6.4 in November 2016 and the National Bank of Rwanda said it was overall thanks to the subdued demand-side and supply-side pressures, coupled with the stability of the exchange rate.
Also a move from uncontrolled pricing to price rationing was seen by most of the people as a key factor for inflation to lower.
In Press conference held on December 29, the Ministry of Trade and Industry , Vincent Munyeshyaka said that the dramatic increase in food price of 8.7 percent for the year 2016 has caused inflation to go high whereby it shouldn’t go higher than 5 percent.
“ An Increase in price of Irish potatoes does affect other food product for the consumer ability to purchase goes down and they opt for other product food such as, maize flour, sweet potatoes etc. and thus, such increase in demand making the price of these product to go high” the minister said
The minister went on to say that there is now stability in food price according to the monthly report of Consumer Price Index for the month of November by the National Bank of Rwanda where inflation has increased by 2.2 percent and is not expected to go beyond 3.0 percent for the first semester of 2018.
In Early November 2017 a meeting, that brought together the Minister for MINICON, the Minister for MINAGRI and the Minister for MINALOC with 500 Potato growers, was held in Musanze that came out with relevant 10 decisions aimed at controlling potatoes prices at the market.
In those decisions includes among others Price rationing for Irish potatoes (For the Kinigi variety) varying from 165-170 frw/kg for a grower and 177-182 frw/kg for a collective stock and 200-205 frw/kg for a wholesale stock in Kigali and then 215-220 frw/kg for the last consumer in Kigali.
For other variety of Irish potatoes, Prices were set as the following 135-140 frw/kg for a grower and 147-152 frw/kg for a collective stock and 200-205 frw/kg for a wholesale stock in Kigali and then 185-190 frw/kg for the last consumer in Kigali
The Express News
