Inflation hits five-month high

A woman sells a variety of goods at an open air market in Nyeri. The cost of living in May rose the highest in five months lifted by high cost of food, cooking fuel and electricity charges. Photo/FILE 

By NEVILLE OTUKI

In Summary

• Inflation for the month stood at 7.30 per cent up from 6.41 per cent in April

The cost of living in May rose the highest in five months lifted by high cost of food, cooking fuel and electricity charges.

 

Inflation for the month stood at 7.30 per cent up from 6.41 per cent in April, indicating life was more expensive for households in May compared to last year in the same period when it stood at 4.05 per cent.

Statistics from the Kenya National Bureau of Statistics show that prices of cooking fuel, water, electricity and gas rose at the rate of 1.76 per cent in May followed by a 1.25 per cent rise in the cost of food and non-alcoholic beverages.

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Consumers also had to put up with higher transport cost which went up by 1.43 per cent on increased fuel cost and parking charges in the period.

The Central Bank of Kenya’s preferred inflation levels is below five per cent.

The delayed rains have sparked fears of subdued food production this year, likely to further push up inflation – the rate at which the price of a select basket of goods rises.

This has also affected water levels for hydroelectricity generation resulting in heavy use of alternative expensive diesel-powered generators in producing thermal energy.

In May, the cost of 50 kilowatt hour of electricity went up by 21.71 per cent due to fuel adjustment costs.

READ: Utility bills rise as power cost hits two-year high