Nairobi, Kenya: The cost of living went up marginally in April fuelled by an increase in food prices.
Data from the Kenya National Bureau of Statistics (KNBS) shows that month-on-month inflation rose to 4.14 per cent from March’s 4.11 per cent due to an increase in food items such as tomatoes, beef, potatoes and sugar.
Housing, Water, Electricity, Gas and Other Fuels’ index went up by 0.31 per cent between March and April, mainly due to a modest increases in the cost of house rent and cooking fuels like charcoal.
The Transport Index increased by 0.20 per cent over the review period, mainly on account of high taxi and public service vehicle fares, which were observed despite a decrease in the cost of diesel.
The prices of kerosene and diesel declined by 5.26 per cent and 0.85 per cent, respectively, over the period under review.
The overall rate of inflation has been on a downward trend from a high of 13.06 per cent in April last year to a low of 3.2 per cent in December.
Inflation levels however began rising gradually to 3.67 per cent in January 2013 and 4.44 per cent in February before declining marginally to 4.11 per cent in March.
“The kind of outsized pressure we were seeing ininflation in January and February appears to have dissipated. Not only has the Kenya shilling continued to rally since the election, but globally, oil prices … now appear to have moderated,” said Standard Chartered Bank Regional Head of Research, Africa Razia Khan. “This supports a somewhat more benign outlook going forward, and leaves open the room for easing, in our view.”
Heavy rains
Experts have also warned of a looming food shortage due to prolonged political campaigns and heavy rains that have disrupted transport and farming activities across East Africa.
Paul Mbuni, the chairman of the Kenya Society for Agricultural Professionals (KESAP), said destruction of infrastructure could lead to food insecurity towards the end of the year.
A cross-section of fund managers expect Kenya’s economy to grow at around six per cent this year — though the Government puts its projections at 5.6 per cent — but it is feared that a resurgence ininflationary pressures could lead to a rise in interest rates and stifle productive investments.
By James Anyanzwa, The Standard
