Inflation for June Spikes to 5.7 Percent Due to Higher Food Prices

Inflation rate for the month of June spiked to 5.7 percent due to an increase in food prices.

According to the latest inflation stats released by the Kenya National Bureau of Statistics (KNBS), the month of June experienced an increase in prices of maize flour, beens and green grams among other consumables.

Some market analysts had banked their hope on the onset of the much-awaited rains for a reprieve in food prices, especially vegetables.

During the month of May, the inflation rate was quoted at 5.49 percent. During the month of June, Kenyans spent more money on the same quantity of food than they did a month ago.

The continuous increase in fuel prices has also been blamed for the rise in the inflation rate.

Every time fuel prices go up, especially diesel, that is used to power machines, commodity prices also go up as manufacturers move the cost to the consumer.

According to KNBS, during the month of June, prices of spinach went down by 2.42 percent while that or kales dropped by 6.87 percent. Prices of tomatoes, on the other hand, went down by 0.36 percent.

Prices of maize increased during the month. The price of a 90-kilogram bag of dry maize is retailing at 4,000 shillings across the country from just 3,600 shillings a month ago.

Stats from KNBS quoted the price of 1-kilogram dry maize at 48.70 shillings from 48.45 shillings in May. The price, however, does not reflect the reality on the ground. In most parts around the country, the price of 1-kilogram loose maize is retailing between 50 and 55 shillings.

There was a delay in long rains, affecting most farmers, especially in the larger Rift Valley region. In fact, Kenyans should prepare for more hunger later in the year because majority of the farmers did not plant any maize.

Maize harvest is expected to drop by at least 38 percent this season. But, is the government prepared?