This archive report was first published on 29 June 2019.
Kenya's inflation rate rose to 5.7 percent in June, driven by increases in food and fuel prices, according to the Kenya National Bureau of Statistics.
While the easing weather conditions and improved agricultural output held back growth for some food commodities, the pricing of essentials such as maize grain, sifted flour, and beans continued to rise unabated, leading to the uptick in the consumer price index.
“Prices of spinach, sukumawiki, and tomatoes recorded decreases. However, prices of some other foodstuffs like beans, maize grain, green grams, and sifted maize flour increased during the same month,” the KNBS inflation statistical release stated.
On petroleum, the prices for all commodities but kerosene were on the increase, with the average petrol and diesel prices per liter rising to Ksh 115.80 and Ksh 105.57 respectively.
Despite the inflation rate remaining within the historical target range of 2.5 to 7.5 percent, inflation jitters are expected to persist due to internal and external factors, including delayed rainfall, a looming grain shortage, and global growth optimism under rising tensions.
The valuation of the Kenyan shilling also makes for an emerging area of concern, with the shilling having breached the Ksh 102 mark against the US dollar under the cloud of elevated dollar demand by importers and high liquidity.
CBK Governor Patrick Njoroge played down any fears, stating, “We need to be more relaxed. We have more than enough firepower to deal with any volatility.”
