With Fuel Prices so high, are Inflation Figures Being Given True?

The Kenya National Bureau of Statistics announced that inflation rate for the month of January 2018 stood at 4.83 percent.

The rate was an increase from 4.5 percent that had been recorded in the previous months with the agency owing the ‘slight’ increase in the increase in food prices.

Kenyans have however been questioning the criteria being used by the statistics body to arrive at the inflation rates that do not mirror what is going on the ground.

“I don’t understand how KNBS could tell us that the inflation was at its lowest in December for instance when fuel prices had skyrocketed, subsided maize flour out of the shelves and transport costs so high. What do they base on?” asked Jane Nasimiyu, a trader in Eldoret town.

Fuel prices have been increasing for the last 6 months hitting a 40-month high for the month of February in what has been attributed to higher global prices.

Petrol is now up by 1.62 shillings to 107.92 shillings per liter in Nairobi. Diesel is now up by 2.14 shillings to 96.96 shillings per liter in Nairobi. Diesel is widely used by commercial vehicles and in powering machines in industries.

Kerosene has been hiked to 76.75 shillings per liter, a 1.97 shilling increase according to data released by the Energy and Regulatory Commission (ERC).

ERC has attributed the prices increases on the imported cargo to higher global fuel prices.