Weather pushes inflation, food prices down

By FRANKLINE SUNDAY

Kenya; Prices of most basic food commodities reduced last year due to improved weather conditions and increased farm harvests in most parts of the country.

According to the 2013 Economic Survey, annual inflation eased significantly from 14 per cent in 2011 to 9.4 per cent in 2012 with the country’s reliance on rain-fed agriculture paying out. The drop in inflation to single digit figure is the most significant reduction ever since 2009 when annual inflation dropped from 10 per cent to settle at a six-year-low of four per cent in 2010.

Basic items

Even with the economic uncertainty in better part of last year, inflationary pressures maintained a steady decline to hit a low of 3.2 per cent in December, an indication of the resilience of the country’s economy.

The value of agricultural produce rose by 3.9 per cent from Sh331 billion in 2011 to Sh344 billion in 2012 with improvement in most key crops apart from horticulture, tea and pyrethrum, which recorded declines. 

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However, despite the overall drop in inflation figures, consumers still feel the cost of basic food items like flour, bread, milk has remained high for too long with the cost of living unchanged.

This has been attributed to the fact that most farmers have maintained high prices on their products to recoup the losses incurred from delayed rains in the previous years and at the same time accommodate the high cost of inputs and production.