Annual inflation rose to 7.4% in January, approaching the top of the National Bank of Rwanda's 2-8% target range.

The rise in inflation in recent months was caused by unfavourable weather conditions that meant a delay in the harvest, compared to a bumper harvest a year earlier, Governor John Rwangombwa told a press conference.

The bank has raised its average inflation forecast for 2025 to around 6.5%, up from 5.8%, and sees it at 4.1% in the following year.

"Though there are slight pressures on inflation, (it) remains within the band, and we are confident that at this rate, 6.5%, we'll be able to maintain inflation within the policy band," Rwangombwa said.

"The risk we always highlight is these projections are based on normal weather conditions and normal agriculture performance. But also we see geopolitical tensions, globally, in the region, so this doesn't take into consideration any effect from these tensions."

--Reuters--