Rwanda has cut fuel prices after global crude prices fell and officials said this was likely to see a further fall in inflation in the coming months after the rate dropped in June.

"It will contribute to keeping inflation to (a single digit figure) by the end of the year as fuel has a ripple effect on many consumer goods," Kampeta Sayinzoga, permanent secretary at Rwanda's ministry of finance and economic planning said.

Rwanda's year-on-year urban inflation dropped to 5.92 percent in June from 8.32 percent the previous month, thanks to falls in prices of food, housing and energy.

The country's ministry of trade and industry said effective from Wednesday, prices for diesel and petrol are set at a maximum of 970 Rwandan francs ($1.6) per litre, down from 1,030 Rwandan francs for petrol and 1,000 Rwandan francs for diesel.

It said the reduction was "mainly due to the reduction in oil prices on the international market in the last two months".

Rwanda escaped the worst of soaring inflation and weakening currencies that hit its larger neighbours in east Africa last year, such as Uganda and Kenya, because strong farm output kept food prices down and as well as removals of fuel import duties.

(1$=614 Rwandan francs)