High fuel, housing prices sees inflation hit 6pc

 

CBK headquarters in Nairobi. Clearing of all cheques will be taking a day beginning mid next month, the Central Bank of Kenya has announced. File

 

By IMMACULATE KARAMBU 

 

The overall rate of inflation rose for the second consecutive month in July on account of increasing prices of fuel and housing.

According to data released by the Kenya National Bureau of Statistics (KNBS) on Wednesday, the rate of inflation stood at 6.02 per cent in July, up from 4.91 per cent in June.

“Housing, water, electricity, gas and other fuels’ index rose by 0.3 per cent between June and July, 2013, mainly due to increases in house rent and charcoal,” said KNBS in statement.

During the period under review, the cost of transport increased by 0.98 per cent, which KNBS attributes to increases in the pump prices of petrol and diesel by the Energy Regulatory Commission (ERC) during its last fuel price review.

On July 14, ERC announced a Sh1.34 and Sh3.70 increase per litre in the pump price of super petrol and diesel respectively in Nairobi, while allowing a Sh2.03 decrease per litre of kerosene.

The result of this, according to KNBS was a rise in public transport fares that pushed the transport index up during the month.

In July, the cost of healthcare also went up by 0.95 per cent due to increases in doctor’s charges and the price of medicine