High sugar, fuel prices push July inflation to 4.35pc

A man pick sugar at a supermarket in Nairobi. FILE PHOTO | NMG 

By PATRICK ALUSHULA

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Summary

• Official data shows the cost of living measure rose in July by 0.07 percentage points, from 4.28 per cent recorded in June.
• The rise in the inflation rate persists even as the Central Bank of Kenya expects it to remain within the government range.
• The cost of accessing health services went up by 1.97 per cent in July, translating to a 6.17 per cent rise from the same time last year.

Increased prices of sugar, petrol, electricity and health put pressure on households in the month of July, pushing the inflation rate to a four-month high of 4.35 per cent.

Data released on Tuesday by Kenya National Bureau of Statistics (KNBS) showed that the cost of living measure rose in July by 0.07 percentage points, from 4.28 per cent recorded in June.

The rise in the inflation rate persists even as the Central Bank of Kenya expects it to remain within the government range.

The cost of accessing health services went up by 1.97 per cent in July, translating to a 6.17 per cent rise from the same time last year.

The price of a kilogramme of sugar rose by Sh8.56 or 6.66 per cent on average to retail at Sh137.11.

This period was characterised by heightened crackdown on illegal importation of the commodity in the country triggering a probe by Parliament.

At the same time, the price of kerosene and petrol went up, putting pressure on inflation.

This was after Treasury CS Henry Rotich imposed an excise duty of Sh10.30 per litre to curb adulteration.

READ: Beer, water prices to rise in inflation tax plan

The move send a litre of kerosene to Sh86.69, being 36.4 per cent higher than it was in July last year.

“Housing, water, electricity and other fuels’ index increased by 0.12 per cent in July 2018 compared to 0.52 per cent recorded in June 2018. This was mainly attributed to an increase in kerosene, electricity and cooking gas,” said KNBS Director General Zachary Mwangi in a statement.

The cost of a 13 kilogramme cooking gas cylinder rose by 0.23 per cent in July to retail at an average of Sh2,176.31, being about five per cent higher than it was at the same period last year.

The price of four kilogrammes of charcoal eased marginally by 0.53 per cent but is 68.34 per cent more expensive year-on-year.

However, food and non-alcoholics index, which accounts for 36 per cent of the basket used to calculate inflation, decreased by 2.4 per cent as more foodstuffs registered decline in prices in line with improved weather condition.