Producer Inflation Stands at 6p.c Compared to 0.8p.c in 2016

The second quarter year on year overall producer inflation was 6.44 percent in June 2017 compared to 0.8 percent recorded in June 2016.

According to the Kenya National Bureau of Statistics (KNBS) Producer Price Index Q2’17 that was released earlier this month, the overall producer prices increased by 1.61 percent compared with the previous quarter to reach 119.47 points.

The increase was mainly driven by a rise in the manufacture of food products and manufacture of chemicals and chemical products. However, during the same period producer prices of electricity, manufacture of other nonmetallic mineral products and manufacture of basic metals declined.

The report further noted that the producer price index of food products increased due to rise in prices of sugar, grain mill products especially maize flour, tea and processed milk compared with the first quarter of 2017.Manufacture of furniture and manufacture of wood and of products of wood and cork also increased in the review period.

However, producer prices of cement, salt extracts and wearing apparel declined compared with the first quarter. The producer prices of some products especially cement have dropped due to competition.