Rwanda Market Prices Rise by 5.1%

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Inflation Driven by Food, Housing, Transport, and Health Costs

Prices across Rwanda’s urban and rural markets increased by 5.1 percent in October 2025, compared to the same month in 2024, according to the National Institute of Statistics of Rwanda (NISR).

The data were released on December 10, 2025, as part of the country’s latest Consumer Price Index (CPI) report.

Inflation Slows Compared to September

NISR figures show that annual inflation stood at 6.2 percent in September 2025, indicating a slight slowdown in October.

Several factors contributed to the rise in prices during October. Food and non-alcoholic beverages increased by 1 percent. Alcoholic beverages and tobacco rose by 15 percent. Housing, water, electricity, gas, and other fuels went up by 4.8 percent.

Sharp Increase in Health and Hospitality Costs

Health-related prices recorded a significant increase of 62.7 percent. Transport costs rose by 6.9 percent, while prices for restaurants and accommodation increased by 18.1 percent.

On a month-to-month basis, comparing October 2025 with September 2025, overall prices increased by 1 percent. This rise was mainly driven by a 0.7 percent increase in food and non-alcoholic beverages and a 2.8 percent increase in housing-related costs.

Urban Inflation Remains High

In urban areas, prices rose by 7.1 percent in October 2025 compared to October 2024. This was slightly lower than the 7.3 percent recorded in September.

The increase was largely caused by higher prices for food and non-alcoholic beverages, which rose by 1.6 percent. Alcoholic beverages and tobacco increased by 16 percent.

Housing, water, electricity, gas, and other fuels rose by 7.5 percent. Health services recorded a sharp increase of 71.3 percent. Transport costs increased by 8.5 percent, while restaurant and accommodation prices rose by 19.1 percent.

Core Inflation Also Rises

Core inflation, which excludes food and energy products, increased by 9 percent year-on-year in October 2025.

On a monthly basis, core prices rose by 1.3 percent, mainly due to a 1.1 percent increase in food and non-alcoholic beverages and a 4.1 percent rise in housing-related costs.

Rural Inflation Shows Slower Growth

In rural areas, prices increased by 3.8 percent in October 2025 compared to October 2024. This was lower than the 5.5 percent recorded in September.

Key contributors included a 0.8 percent rise in food and non-alcoholic beverages, a 14.6 percent increase in alcoholic beverages and tobacco, and a 55 percent rise in health-related costs.

Prices for restaurants and accommodation increased by 17 percent.

On a month-to-month basis, rural prices rose by 0.8 percent, mainly driven by a 0.5 percent increase in food and non-alcoholic beverages.

Economic Outlook

The latest NISR data highlight continued pressure on household budgets, especially from health, housing, and transport costs. While inflation has eased slightly compared to September, rising living expenses remain a key concern for consumers across both urban and rural areas.