Rise in food prices accelerates inflation to nine-month high

Latest data by Kenya National Bureau of Statistics (KNBS) shows inflation accelerated from October’s 6.47 as food and non-alcoholic drinks index increased by 1.17 per cent.PHOTO: STANDARD

Kenya’s inflation has accelerated for the third straight month to a nine-month high of 6.68 driven by increase in prices of most food items.

Latest data by Kenya National Bureau of Statistics (KNBS) shows inflation accelerated from October’s 6.47 as food and non-alcoholic drinks index increased by 1.17 per cent.

Its inflation moved to 11.17 as increase in several food prices outweighed those that declined. This category accounts for 36.04 per cent of the basket of goods under consideration and therefore its movement comes with more significance in determining inflation number.

In a month that saw all the items in the basket display increase in prices apart from education. The category of alcoholic beverages, tobacco and narcotics recorded 0.11 per cent rise. Year-on-year, it is now up by 13.96 per cent.

In the data collected during the second and third week of November, Consumer Price Index (CPI), which examines the weighted average of prices of a basket of consumer goods and services, rose to 173.85. In October, it was at 172.62.

Tomatoes recorded the highest rise in price among the selected food items. A kilogramme of tomatoes averaged Sh73.93, being an increase from Sh69.86 in October. However, the price is 31.3 per cent lower than it was in November last year.

EXPENSIVE

Cabbages, whose price is now 44.6 higher than it was last year, leads in the list of foodstuffs that have become more expensive this year. Month-on-month, it has recorded a 3.5 per cent increase to Sh62.76 per kilo.

The price of Sukuma wiki, popular among many households, rose by 4.9 per cent to Sh43.15 per kilogramme. Other items that registered increased prices include sugar and beef.

In the just ended month, house rent became more costly. A single-roomed house was averaging Sh4, 070, up from Sh4, 032 in previous month. But year-on-year, tenants are now paying at least Sh200 more.

While households enjoyed drop on cooking gas, kerosene prices rose. A litre of kerosene was sold at an average of Sh63.13 being Sh3.45 higher. Year-on-year, kerosene is expensive by Sh7.36.
The current inflation remains within Central Bank of Kenya target of between 2.5 per cent and 7.5 per cent.