Kenya Records World’s 28th Highest Inflation Rate of 10.28 Pc

Kenya records the first highest inflation rate since May 2012 (57 months). According to a report from Kenya Bureau of Statistics (KEBS), inflation rate hit 10.28 percent being ranked the 20th world’s highest inflation rate.

The rise in inflation has been furthered outside the government’s preferred ceiling on the account of rising food prices due to the effects of adverse drought.

A statement by KNBS states that the increase in food prices was contributed partly by the prevailing drought conditions

The cost of living measure stood at 9.04 percent last month. The Central Bank of Kenya preferred inflation target range to lie between 2.5 percent and 7.5 percent.

Food and beverages Index increased by the rate of 3.18 percent between the months of February and March this year. The inflation rate between the months was accounted for by the increase of several food items basics including; spinach, maize flour, milk, potatoes and maize grains.

Food inflation has been on the rise year on year. In March this year the rate stood at 18.56 percent which is the highest level in food inflation since March 2012.

During the same period of review, housing, water, electricity, gas and other fuel index increased at a rate of 0.69 percent. Partly, this was due to the increase in the cost of rent, fuel and water services.

Transport Index increased by 0.27 percent in March compared to February 2017 on the account of increases in the pump prices of petrol and diesel.

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Written by Amina Martha.