Inflation

I don’t know what the official figures say, but inflation seems to be rampant here just now. Some of this is reflecting the world situation : fuel is now 900 Frw a litre, compared to 640 when we arrived in August 2006. At 90p, I know that it is still a lot cheaper than in the UK, bizarre when you consider that it is brought here to the centre of Africa by ship, pipeline and lorry. However, transport of materials is such an essential part of the economy that many other prices are rising as a result (I’m trying to resist a very obvious pun about fuelling inflation). Building supplies are a prime example of this and one which has affected my work considerably. It becomes very difficult to control costs when inflation is high, or even to know when price increases are justified or have some element of profiteering. I’m old enough to remember mortgage rates of 15% in the UK, so it’s not my first experience of this, however!

Rice prices have also risen sharply, although even before this it was relatively expensive and not really one of the staple carbohydrates. Sweet potatoes, savoury bananas, “Irish” potatoes and cassava are all cheaper. Cooking oil, essential in Rwandan households, has also shot up in price. As usual it is those who are poorest who will suffer most. Subsistence farming is not producing higher incomes and many people round Kamembe are earning the national minimum wage of 15,000 Frw ($30) a month, or the “famous” $1-a-day for casual labour. It’s not a happy picture, but as so often here, equally not a big enough crisis to attract much attention.