September Inflation Hits 5.70% As Cost of Living Starts To Bite

By Soko Directory Team / Published September 28, 2018 | 9:42 am

The inflation rate for the month of September has hit 5.70 percent from 4.04 percent recorded in August according to stats released by the Kenya National Bureau of Statistics (KNBS).

The Consumer Price Indices (CPI) increased by 1.02 percent from 192.18 in the month of August to 194.14 in September.

Between the month of August and September, food and non-alcoholic drinks index increased by 0.37 percent due to the increase in prices of some foodstuffs that out-weight the decrease in other foods.

The year on food inflation increased from negative 1.15 percent in the month of August to positive 0.50 percent in the month of September.

According to the stats, housing, water, electricity, gas, and other fuel indices increased by 0.47 percent in September compared to what was recorded in August.

The index for the fuels was also 7.29 percent higher than what was recorded in 2017 at the same time mainly on account of reviewed electricity tariffs.

The transport sector index increased by 7.99 percent compared to what was recorded in August. The same index was 17.29 percent higher than what was recorded at the same time in 2017.

The increase in the transport index has been attributed to the increase in fuel prices following the implementation of the 8 percent Value Added Tax (VAT) on petroleum products as stated in the Finance Act 2018.

The price of foodstuffs might increase even further as the Finance Act 2018 starts to take effect. The government had directed that a 2-kilogram packet of maize flour to retail at 75 shillings from the current 100 shillings. Millers have, however, objected the directive saying that it is not practical.

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