More pain for consumers as inflation edges up to 8.04 percent

 

An increase in the price of basic food commodities and electricity in August saw Kenya’s inflation figures climbing back up, putting a strain on the budgets of millions of households across the country.

Data released by the Kenya National Bureau of Statistics (KNBS) Thursday shows the country’s inflation rose by 0.61 per cent to settle at 8.04 per cent in August.

“Between July and August 2017, the food and non-alcoholic drinks index increased by 1.04 per cent to a notable rise in the cost of some food items,” said KNBS in a statement.

Tomatoes, a staple part of the daily food basket in most households, registered the largest spike in prices, with a kilo retailing at Sh98.7 in August, a 14 per cent increase from Sh86.5 in July and Sh74 in August last year.

Depressed supply

Carrots, maize and rice also registered price hikes, with a kilo of each of the items going up by 49 per cent, 36 per cent and 13 per cent respectively compared to a similar period last year.

The KNBS said the increase in food prices could partly be attributed to supply constraints, particularly in the second half of the month following the August 8 General Election.

“The increase was mainly attributed to depressed supply, especially in the second week of the month,” explained KNBS.

“As a result, the year-on-year food inflation rose to 13.57 per cent in August 2017 compared to 12.19 per cent in July 2017.”

Kenyans were also forced to dig deeper into their pockets in August to settle their electricity bills, with the cost of 200Kwh of electricity going up by 89 per cent from Sh2,078 in August last year to Sh3,944 this year. The rise in inflation has been compounded by the effects of a protracted drought that has depressed growth in the agricultural sector.