Kenya’s inflation jumps for the first time since April from high food costs
- The new inflation rate is expected to exert pressure on consumer spending as Kenyans find themselves with limited purchasing power in comparison to recent months.
Kenya’s inflation rate has increased for the first time since April this year to stand at 4.84 per cent in October from a low 4.2 per cent in September.
Data from the Kenya National Bureau of Statistics (KNBS) monthly consumer price index (CPI) indicates the growth in the rate of common consumer goods and services is attributable to higher food and fuel costs.
The monthly Food and Non-alcoholic drinks index rose by 1.14 per cent during the month as food inflation increased by 5.76 per cent.
“This was contributed by an increase in the prices of carrots, mutton and wheat flour among other food items, “the KNBS noted.
The transport index meanwhile increased by 0.62 per cent as petrol prices rose by 1.72 per cent during the month outweighing a 1.68 per cent decrease in the price of diesel.
Housing, electricity and water costs were higher during the month as the index rose by 0.94 per cent on account of higher cooking fuel and kerosene costs.
The rise in the inflation rate ends a five month disinflation trend- when the rise in the cost of common user goods and services cooled month on month.
The new inflation rate is expected to exert pressure on consumer spending as Kenyans find themselves with limited purchasing power in comparison to recent months.
October inflation has nevertheless kept within the government targeted band of 2.5 to 7.5 per cent.
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