Cost of living hits a 15 month high with June inflation at 6.3%

The cost of living has soared to a 15-month high with June inflation closing at 6.32 per cent from a lower 5.87 per cent in May.

This is the highest cost of living faced by Kenyans since February 2020 when inflation stood at a high 7.17 per cent according to data from Kenya National Bureau of Statistics (KNBS).

The month on month increase in inflation is attributable to greater food and fuel costs which had a knock on effect to energy and transport costs.

Foodstuffs including sukumawiki, spinach, beef, and cooking fat registered increased costs offsetting a cool-down in the price of commodities such as potatoes, onions and tomatoes.

At the same time, electricity costs shot up during the month on account of a greater fuel-cost charge to monthly billings to customers by Kenya Power.

During the month, the cost of renting a single room also shot up by 0.7 per cent to Ksh.3720 while transport costs shot up by 0.3 per cent on the back of greater petrol costs.

On June 14, the Energy and Petroleum Regulatory Authority (EPRA) effected changes to the maximum pump prices raising the cost of petrol by 0.6 per cent to an average Ksh.127.98 per litre.

The steep growth curve in inflation signals tougher times for Kenyans and depressed disposable income even as more pressure from new taxes head their way.

For instance, from Thursday, energy costs will tip upwards with the cost of LPG shooting on new value added tax (VAT).

Internet data services and bank loan costs are also expected to edge upwards on new taxes under the proposed Finance Bill.

Nevertheless, the Central Bank of Kenya (CBK) has projected inflation to remain within the government target range of 2.5 and 7.5 per cent.