High food and fuel prices contribute to increase in inflation rate

KNBS Director-General Macdonald Obudho. [David Njaaga, Standard]

Kenya’s inflation rate has risen to 8.3 per cent in the month of July, compared to 7.9 per cent in June, the Kenya National Bureau of Statistics (KNBS) has said.

The increase was mainly due to high food and fuel prices, KNBS said in a press release on Friday.

Food and non-alcoholic beverages accounted for 15.3 per cent, transport-7 per cent, while housing, water, electricity, gas, and other fuels- 5.6 per cent between July 2021 and July 2022.

“The month-to-month food and non-alcoholic beverages index increased by 1.1 per cent between June 2022 and July 2022,” KNBS noted.

Alcoholic beverages, tobacco, and narcotics Consumer Price Index (CPI) increased by 1.3 per cent between June 2022 and July 2022. According to the Bureau of Statistics, this was due to an increase in beer prices, among other items.  

Prices of household commodities and equipment increased by 9.8 per cent between July last year and this year.

KNBS attributed the rise to an increase in prices of bar soap which rose by 3.5 per cent.

Health increased by 1.2 per cent, transport rose by 7.0 per cent while education services increased by 1.1 per cent between July 2021, and July 2022.

“Prices of carrots, maize grain- loose and Non-aromatic (unbroken) white rice and beans increased by 13.0, 9.7 and 4.2 per cent in July 2022, respectively." 

 

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