June inflation up on weak shilling

Eldoret grocer Lillian Kwamboka selling tomatoes in an undated photo. The cost of living for the month of June rose to 7.03pc from 6.87pc despite a decline in food prices due to a weak shilling. PHOTO | JARED NYATAYA | NATION MEDIA GROUP 

In Summary

• KNBS says food prices continued a month-to-month decline, easing the high cost of leaving experienced in April as other basic expenses increased, reversing the gains in making life cheaper.
• Transport index increased by 0.86 per cent mainly due to notable rises in the cost of petrol and diesel, both of which climbed by close to 5 per cent.

By EDWIN OKOTH
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The cost of living for the month of June rose to 7.03pc from 6.87pc despite a decline in food prices due to a weak shilling, new government data shows.

Runaway currency depreciation rates experienced in June denied Kenyans a cheaper cost of living as inflation rose to 7.03 per cent.

Data released by the Kenya National Bureau of Statistics (KNBS) on Tuesday showed a 0.16 per cent climb in overall inflation despite the 0.1 per cent fall in the Food and Non-Alcoholic Drinks index.

The rate is, however, lower than last year's 7.39 per cent.

The KNBS says food prices continued a month-to-month decline, easing the high cost of leaving experienced in May as other basic expenses increased, reversing the gains in making life cheaper.

“Housing, water, electricity, gas and other fuels' Index increased by 0.37 percent mainly due to cost increases in respect of house rents, cooking fuels and other utilities.

"There were notable decreases in the fuel cost adjustment charges per KWH of electricity. However, these were balanced out by increases in foreign exchange charges, (and) hence the cost of electricity remained as in the previous month,” the data agency stated in its monthly updates.

TRANSPORT

The transport index increased by 0.86 per cent mainly due to notable rises in the cost of petrol and diesel, both of which climbed by close to 5 per cent.

Kerosene prices also went up by 4.21 per cent from May but recorded the highest reduction by 25.08 per cent from last year.

The shilling went through a shaky month, hitting a low of 98.7 against the dollar, according to Central Bank of Kenya statistics, while traders quoted 99 in exchange for one unit of the greenback.

Inflation stability and control of the foreign exchange was among the top agenda CBK outlined last month.

CBK Chairman Mohammed Nyaoga and Governor Patrick Njoroge both vowed to tame the two in a bid to stabilise the economy.