Rwanda's year-on-year inflation rate eased to 0.32 percent in May from 0.64 percent in April, the National Institute of Statistics of Rwanda (NISR) said in a statement on Tuesday.

"In May 2010 the All Rwanda general index is established at 102.9(102.874) this stands for a bit increase of 0.004 percent over the previous month which was 102.9(102.878). In annual change it increased by 0.32 percent compared to 0.64 percent in the previous month," NISR said.

The central African nation's headline inflation rate has fallen steadily from a peak of 22.3 percent in December 2008.

Like Kenya, Uganda and Tanzania, inflation rates in Rwanda have been slowing gradually over the past year and expectations of better harvests have improved the inflationary outlook even though economic growth is now picking up.