Abstract

This research focuses on the impact of consumer pricing volatility in macroeconomic studies, particularly on inflation, economic growth, and financial stability. It employs the GARCH model to estimate the volatility of consumer prices in Rwanda using Rwanda’s National Institute of Statistics (NISR) data from 2000 to 2022. The study reveals significant price fluctuations, particularly during economic shocks, emphasizing the need for policymakers to address pricing volatility. This research contributes to the understanding of consumer pricing volatility in Africa and provides valuable insights for informed policymaking in Rwanda, especially in managing inflation, monetary policy, and economic stability.

Keywords: Macroeconomic Policies, Consumer Pricing Volatility, GARCH) Approach