April inflation rises to 6.41pc

Money Markets

A woman sells groceries at Nyeri Municipal Market. Overall inflation rose slightly to 6.41 per cent in April from 6.27 per cent in March due to higher food prices. FILE 

By BD Reporter

In Summary

• Inflation for the month of April rose marginally to 6.41 per cent from 6.27 per cent in March 2014.
  
  
   

The month on month cost of living figures resumed an upward trend after declining from January this year, remaining in the upper bound of the CBK inflation target of 5 per cent.

Inflation for the month of April rose marginally to 6.41 per cent from 6.27 per cent in March 2014 helped by a 1.6 jump in the cost of food and non-alcoholic drinks.

 

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The Central Bank held its fire on base rates at 8. 50 per cent in March 2014 on declining inflation numbers.

Between March and April 2014 housing, water, electricity, gas and other fuel’s index increased by 0.33 per cent. The Kenya Bureau of Statistics attributed this to the higher costs of common cooking fuels such as charcoal, gas and firewood.

 

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The cost of electricity consumption dropped slightly compared to last month on account of forex charges dropping by 5 cents per KWh in April 2014.

The transport index rose 3.6 per cent over the period on higher cost of petrol and matatu and bus fares.

Commercial banks have remained hesitant to ease lending rates despite the central bank bias for lower interest rates.