Cooking Oil, Wheat, and LPG Price Surge Pushes March Inflation to 5.56%

The annual inflation rate in Kenya has accelerated to 5.56 percent for March, an increase from the 5.08 rate reported in February 2022.

According to the Kenya National Bureau of Statistics, the inflation increase is mainly attributed to increased food prices, wheat flour, and cooking oil.

The prices of commodities under food and nonalcoholic beverages rose by 1.49 percent compared to February 2022 by 6.50, 4.47, and 4.22 percent, respectively.

Compared to 2021, the food index in 2022 has been rising and now stands at 9.92 percent. This means that prices of food items in March 2022 were relatively high compared with prices of food items recorded in March 2021.

For instance, a liter of cooking oil now costs more than double the amount it costs in 2021, the same period. A three-liter and five-liter cost 865 shillings and 1700 shillings respectively in various shopping outlets.

This has been mainly attributed to the oil shortage caused by the ongoing war between Russia and Ukraine and has been predicted to climb even higher should the fight continue.

On the other hand, the continuous rise in wheat prices has led to a double shot up in the prices of wheat products such as bread and wheat flour. A 400g bread that costs 50 shillings is now between 60 to 65 shillings in Kenya, While a 2Kg wheat flour has jumped to 170 shillings from 140 shillings.

Generally, the cost of gas and other fuels increased by 0.71 percent in March.

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The cooking gas (LPG) price has increased to 7.76 percent, with the average cost of refilling a 13 kg cylinder standing at 2,866 shillings from Sh2,659 shillings.

The LPG gas price represents a 38.18 percent rise from the average price of 2,074 shillings in March 2021, attributed to increased landed costs and freight charges.

On March 14, 2022, the Energy Petrol and Regulatory Authority (EPRA) announced new fuel prices where super petrol and Diesel prices were adjusted upwards by 5 shillings.

Transport costs remained constant when the diesel pump prices were between 75- and 80-shillings per liter compared to the current prices of between 108 and 110 shillings across the country.

Since fuel costs in the transport sector contribute up to 35 percent of total direct transport costs, the increase indirectly affects the prices of other items such as spare parts and tires since they are all imported.

Apart from the three significant commodities that have greatly affected the country’s economy, the cost of other items such as water, electricity, and housing have also increased.

Furnishings, Household Equipment, and Routine Household Equipment Index increased by 1.36 percent between February 2022 and March 2022. This was due to an increase in the prices of laundry/bar soap and detergents.

Meanwhile, other food products such as green grams, carrots, and oranges decreased by 0.97, 0.69, and 0.49 percent, respectively.

Almost everything is on the rise. Now coupled with drought in various parts of the country and the still ongoing European Nations war, how is the ordinary man already feeling the weight of using more for less going to survive?

The atmosphere is breathing politics with solemn promises from left to right, yet Kenyans suffer.

What can we now do as a country to ensure the food situation in the country is sustained and inflation is kept at acceptable levels?