The Urban Consumer Price Index (CPI), which serves as the headline measure for monetary policy purposes, increased by 12.9 percent compared to May 2025 and by 0.5 percent compared to April 2026. The annual average inflation rate between May 2025 and May 2026 stood at 8.7 percent.

The report also showed that overall inflation across Rwanda reached 12.3 percent on an annual basis, while rural inflation stood at 11.8 percent.

The latest figures indicate that inflationary pressures remain elevated after a sharp acceleration in recent months. Urban inflation rose from 8.9 percent in January to 9.2 percent in February and March before surging to 13.0 percent in April and remaining high at 12.9 percent in May.

Transport, housing and health costs were among the biggest drivers of the increase in consumer prices.

Urban transport prices rose by 24.5 percent compared to May last year and increased by 1.1 percent on a monthly basis. Housing, water, electricity, gas and other fuels increased by 19.4 percent annually, although the category declined by 0.9 percent compared to April.

Health services recorded the steepest increase among major expenditure categories, rising by 71.6 percent over the past 12 months. Restaurants and hotels also registered a significant increase of 16.6 percent, while prices for alcoholic beverages, tobacco and narcotics rose by 16.1 percent.

Food and non-alcoholic beverages, which account for 27 percent of the urban consumer basket, increased by 6.2 percent annually and 0.9 percent monthly. Within the category, vegetable prices rose by 9.0 percent, meat prices increased by 12.9 percent and non-alcoholic beverages climbed by 11.0 percent compared to May 2025.

The report shows that transport and housing costs made the largest contributions to annual urban inflation, adding 3.2 and 3.1 percentage points respectively to the overall 12.9 percent inflation rate. Food and non-alcoholic beverages contributed a further 2.3 percentage points.

NISR also reported strong inflationary pressures in energy-related products. The urban energy index increased by 44.4 percent compared to May 2025, making it one of the fastest-rising components of household expenditure. However, the energy index declined by 0.5 percent compared to April 2026.

Meanwhile, the local goods index increased by 13.7 percent on an annual basis,

outpacing the imported goods index, which rose by 10.5 percent.

Underlying inflation, which excludes fresh food and energy prices and is considered a key indicator of broader price trends in the economy, rose by 12.0 percent year-on-year and 0.7 percent on a monthly basis. The annual average underlying inflation rate reached 9.2 percent.

The CPI is compiled using a basket of approximately 1,622 goods and services monitored across urban and rural areas of Rwanda. Each month, NISR collects more than 40,000 prices from markets, shops, schools, hospitals and other outlets to track changes in the cost of living.