Conceptually, inflation is a measure of the rate at which the average price of goods and services in an economy increases over some period of time.
Depreciation in accounting is first, the actual decrease in value of fair value of an asset, such as the decrease in value of factory equipment each year as it is used and wears
To explain more about inflation and depreciation, The New Times borrowed a hand from Teddy Kaberuka, an economic analyst.
Kaberuka added that the main mechanism to discourage depreciation, therefore inflation, is to boost local production and increase export.
Rwanda's inflation rate in 2020 is projected at 5 per cent which Kaberuka said is safe for economy.
Kaberuka gave tips on how inflation and depreciation rates can be lowered by increasing locally produces goods and services and export them, encouraging citizens to consume Made in Rwanda as a way of discouraging imports, creating jobs and curb levels of unemployment.
