Food prices drive Kenya's inflation to eight-month high in October while Uganda eases. TEA GRAPHIC
By NEVILLE OTUKI AND REUTERS
In Summary
Kenya's inflation hit an eight-month high of 6.47 per cent in October on higher food and petrol prices.
The Kenya National Bureau of Statistics (KNBS) data shows that
inflation rose from 6.34 per cent in September to 6.47 per cent – the
highest level since February.
Food takes up the largest share (36 per cent) of the basket of
goods that is used to calculate inflation, making it the main driver of
the cost of living.
Food prices that rose in October include sugar, Irish potatoes and sifted maize flour.
The cost of living measure was also driven by higher petrol prices at the pump.
The KNBS data shows electricity prices also rose marginally for
the first time since July on higher forex levy – which is linked to
foreign currency expenses incurred by Kenya Power and electricity
producers.
Consumers, however, got relief from falling cooking gas prices.
Food drives fall
In Uganda, inflation was slightly lower at 4.1 per cent
year-on-year in October, the Uganda Bureau of Statistics said, driven by
a slowdown in food prices.
Month-on-month inflation increased by 0.9 per cent in October,
unchanged from September. The year-on-year inflation in September was
4.2 per cent.
Annual core inflation was revised to 5.1 per cent, up from 4.1
per cent in September, driven by an increase in the price of education,
the Uganda Bureau of Statistics said in a statement.
Core inflation is a measurement that the central bank monitors
for monetary policy, which strips out food, fuel, metered water and
electricity prices.
At 6.47 per cent in Kenya and 4.1 per cent in Uganda, October
inflation is within the two countries' central bank's preferred range of
between 2.5 per cent and 7.5 per cent.
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