Delivering the Monetary Policy and Financial Stability Statement (MPFSS) today, Governor Soraya Hakuziyaremye announced that inflation in Rwanda has eased to 7.1% in August 2025, staying within the Central Bank’s target band.
The achievement comes as many developing economies struggle with double-digit inflation, highlighting Rwanda’s careful balancing of growth and price stability.
According to Hakuziyaremye, while global inflation is projected to fall to 4.2% in 2025, Sub-Saharan Africa remains at much higher levels, averaging 13.3%. Rwanda’s success in controlling inflation makes it one of the region’s relative bright spots.
Rwanda’s inflation path
Fresh food and energy costs have been the main price drivers. Core inflation remained moderate, signalling effective monetary tightening.
Inflation is projected to decline further to around 5.6% in 2026, according to the central bank.
Hakuziyaremye cautioned that climate-related shocks, currency volatility, and global geopolitical tensions could reignite inflationary pressures.
Central Bank’s policy mix has included a carefully managed repo rate, liquidity interventions in the interbank market, and collaboration with the government to stabilise food supplies.
In her statement, Governor Hakuziyaremye stressed that Rwanda’s inflation management is a testament to disciplined policy execution. For international observers, it is a case study of how small economies can keep inflation under control despite external volatility.
