Soaring rents and fuel prices rev up June inflation

There was an increase of 0.70 per cent in the housing, water, electricity, gas and other fuels' index in June 2014 mainly due to higher rent and increases in the prices of kerosene, charcoal and electricity. PHOTO | JOSEPH KANYI | FILE  NATION MEDIA GROUP

In Summary

• There was an increase of 0.70 per cent in the Housing, Water, Electricity, Gas and Other Fuels' Index
• The Transport Index increased by 0.35 per cent due to a rise in the cost of public transport and diesel

By Nation Reporter
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The cost of living went up marginally in June following increases in the prices of fuel, housing and water in the period. This is the second month that inflation, which is now at 7.39 per cent compared with last month’s 7.30 per cent, has risen.

 

“This was mainly due to increase in prices of kerosene, charcoal, electricity and rent,” said the Kenya National Bureau of Statistics acting director general Zachary Mwangi in the latest inflation figures released on Monday.

DROP IN SOME FOOD PRICES

Between May and June 2014, the housing, water, electricity, gas and other fuel’s index increased by 0.70 per cent. In the same period, the transport index rose by 0.35 per cent due to an increase in the cost of diesel and public transport.

In the same period, however, food and non-alcoholic drinks’ index decreased by 0.26 per cent. This was due to a fall in the prices of several food commodities, which outweighed rises in other items.

A drop in the price of miraa, a stimulant that has been banned from sale in the UK, pushed the alcoholic drinks, tobacco and narcotics index lower in the period under review.

In May, the cost of living rose to a five-month high of 7.30 per cent due to significant increases in the cost of electricity and food items.