Rwanda’s annual inflation rose to 15.7% in August 2026, with food, housing-related expenses and transport among the categories putting increasing pressure on household budgets, according to the National Institute of Statistics of Rwanda (NISR).
The latest Consumer Price Index (CPI), released by NISR, shows that consumer prices increased by 15.7 % in August 2026 compared with the same month in 2025.
Food and non-alcoholic beverages increased by 16.3 %, while housing, water, electricity, gas and other fuels rose by 20.4 %. Transport recorded an even higher increase of 24.2 %, while restaurants and hotels increased by 15.6%. Food remains a major concern because it is a daily necessity. NISR reported that food and non-alcoholic beverages were 16.3 % higher in August 2026 than in August 2025.
Uwamurera Clarisse, a resident of Rusororo, said she was surprised by how quickly the price of potatoes had increased.
“Last month, I used to buy a kilogram of potatoes for Rwf650, but this month the price has reached Rwf800. The increase is happening so quickly, and life is becoming harder these days,” she said.
The increase from Rwf650 to Rwf800 represents about 23 % in her experience. For consumers, such changes affect how much food they can buy with the same income. Murangwa Jonas, a vendor, said rising costs are making it harder for sellers and customers to manage daily expenses.
“The prices we get from suppliers are increasing, and customers also complain that they cannot afford to buy as much as before. We have to adjust our prices, but we also understand that people are struggling,” he said.
His experience shows how inflation affects both sides of the market: vendors face higher purchasing costs while consumers have less purchasing power. Housing-related costs have also increased significantly. According to NISR, housing, water, electricity, gas and other fuels increased by 20.4 % between August 2025 and August 2026.
The figure should not be interpreted as meaning that rent alone increased by 20.4 %, because the CPI category combines housing costs with water, electricity, gas and other fuels. For households, higher rent and utility costs can leave less money for food, education, healthcare, clothing and savings.
NISR reported that transport prices rose by 24.2% in August compared with the same month in 2025. For workers and students who depend on public transport, higher fares directly increase daily expenses. Higher transport costs can also raise the cost of moving goods from farms, factories and suppliers to markets, potentially contributing to higher prices for consumers.
In August 2026, the CPI index stood at 256.6 in rural areas, compared with 217.8 in urban areas. In August 2025, the indices stood at 221.2 in rural areas and 188.3 in urban areas. The higher rural CPI index indicates a higher overall price level under the respective CPI baskets. However, the 15.7 % annual inflation figure is the national rate and should not be described as the specific inflation rate for rural or urban areas.
The impact also varies by household. A family that grows some of its own food may experience inflation differently from one that buys nearly everything from markets, while households heavily dependent on public transport may feel transport increases more strongly. Several essential expenses have increased at the same time. Food and non-alcoholic beverages rose by 16.3 %, housing, water, electricity, gas and other fuels by 20.4 %, and transport by 24.2 %.
For households with fixed incomes, higher prices reduce what their money can buy. Clarisse’s experience illustrates this pressure: the difference between Rwf650 and Rwf800 for a kilogram of potatoes may seem small, but repeated increases across essential products can significantly affect a monthly budget.
Murangwa’s experience similarly shows the pressure on vendors, who must balance higher supplier prices with customers’ reduced purchasing power. The 15.7 % national inflation rate provides the overall picture, while the individual categories show where households are facing the greatest pressure. For consumers, the key issue is not only the headline inflation rate but also the changing prices of everyday necessities.
As households adjust their spending, food, housing-related expenses and transport will remain closely watched. For people such as Clarisse, the statistics are reflected in increasingly difficult daily choices at the market.
