Fuel prices, weaker Shilling push June inflation up

Money Markets

Fuel prices and a weak Shilling have pushed June inflation to 7.03 per cent. PHOTO | FILE  

By BD REPORTER

In Summary

• KNBS says housing, water, electricity, gas and other fuels’ index increased by 0.37 per cent driven by cost increases in house rents and cooking fuels in June.

Inflation in June inched up marginally pushed by rising fuel prices, utilities and effects of a weaker shilling.

The Kenya National Bureau of Statistics (KNBS) data shows that inflation rose to 7.03 per cent from 6.87 per cent in May.

The bureau said that housing, water, electricity, gas and other fuels’ index increased by 0.37 per cent driven by cost increases in house rents and cooking fuels in June.

“During the same review period, transport index increased by 0.86 per cent mainly due to notable rises in the cost of petrol and diesel,” says KNBS in a statement.

“There were notable decreases in the fuel cost adjustment charges per kWh of electricity (due to increased hydropower generation). However, these were balanced out by increases in foreign exchange charges hence, the cost of electricity remained as in the previous month.”

Food inflation eased in June by 0.1 per cent due to decreases in food prices.