The year-on-year inflation rate for the month of July stood at 6.3 percent according to stats released by the Kenya National Bureau of Statistics (KNBS).
In June, the inflation rate was at 5.7 percent and all indications for it spiking were obvious given the increase in food prices across the country.
Cytonn Investments Limited, in their report, had projected the inflation for the month of July to oscillate between 6.2 and 6.6 percent.
The month-on-month inflation rate declined by 0.4 percent in July compared to June.
During the month of July, according to KNBS, there was a decline in food and non-alcoholic drinks’ index by 1.0 percent.
There was a decrease in prices of potatoes, sukuma wiki, tomatoes, cabbages and milk by 11.7, 3.8, 1.9, 2.8, and 0.6 percent respectively.
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The prices of maize and maize flour are still high across the country and have increased by at least 38 percent during the month of June.
A 90-kilogram bag of maize across the country has crossed the 4,500 shilling line from an average of 3,600 shillings two months ago.
A 2-kilogram packet of maize flour is retailing between 125 and 140 shillings from 87 shillings with millers saying the prices will not be easing soon.
During the month, there was an increase in the transport index by 0.2 percent as a result of increased pump prices of petrol.
The prices of cigarettes increased by 0.8 percent during the month of July due to an increased levy from the government.
Water, housing, electricity, gas, and other fuels’ index rose by 0.2 percent as a result of an increase in prices of electricity with the cost of 50KWh and 200kWh of electricity increasing by 0.6 and 0.4 percent respectively.
If the conditions will remain as they are, the inflation rate for the month of August is likely to increase to above the 6.5 percent mark.
Food and fuel prices are a key determinant of inflation rate in Kenya and their increase or decrease in prices matters a lot.