Inflation eases in May, says KNBS

NAIROBI, KENYA: Lower food prices has eased Kenya’s inflation to 5.49 per cent from 6.58 per cent in April, Kenya National Bureau of Statistics (KNBS) now says.

The statistics body notes that the food and non-alcoholic drinks index decreased by 0.37 per cent in May mainly due to favourable weather conditions which led to lower prices for some commodities.

“During the period, prices for spinach, sukuma wiki and tomatoes recorded decreases of 10.69, 9.35, and 6.78 per cent,” says KNBS  but also noting that prices of some other foodstuffs like maize grain, sugar, and maize flour sifted increased over the same period while still recording lower prices than May last year.

During the same period, Housing, Water, Electricity, Gas and other fuels’index, increased by 0.61 per cent as a result of higher costs of house rents and cooking fuels.

The transport Index rose by 0.32 per cent, mainly on account of increase in pump prices of petrol and diesel.

According to the latest monthly fuel pump price review released by the Energy Regulatory Commission (ERC) in mid-may, motorists will now pay Sh112 for a litre of petrol in Nairobi.

This is an increase of Sh5.43 from April.

Consumers of diesel, a major component in the manufacturing and transport sectors, were also not spared in the increase with a litre of the fuel now retailing at Sh104.37, an increase of Sh2 from previous month's pricing.

Kerosene, commonly regarded as the poor man’s fuel for lighting and cooking, also went up up by Sh2.24 and is now retailing at Sh104.62 per litre in Nairobi.

The net effect of the hike is a likely spike in the cost of goods as well as fares charged by Public Service Vehicles.