Annual inflation rose to a three-month high of 4.1 percent in July, with upward pressure coming from the prices of food and non-alcoholic beverages, transport, housing, and utilities.
Kenya National Bureau of Statistics (KNBS) data showed that the July figure matched that of April, marking an acceleration from 3.8 percent, which had remained unchanged in May and June.
“The increase in price was mainly driven by a rise in prices of commodities in the food and non-alcoholic beverages category (6.8 percent), transport (4.1 percent), and housing, water, electricity, gas, and other fuels (1.3 percent), over the one-year period,” said the statistics office.
Additionally, KNBS said alcoholic beverages, tobacco, and narcotics recorded an inflation of 5.1 percent in July.
It noted that, on a month-on-month basis, the price of wines registered the highest increase, rising by 2.1 percent, followed by cigarettes and traditional beer with increases of 0.7 percent and 0.6 percent, respectively.
KNBS data shows a kilo of tomatoes closed July averaging Sh84.88, being 20.3 percent higher than it was in July last year. A kilo of loose maize grain followed in acceleration of prices over 12 months, having closed last month averaging Sh71.24 or 18.4 percent costlier.
The price of maize grain has risen by 17.5 percent to Sh75.88 over the same 12-month period. Other commodities with double-digit percentage jumps in prices are a kilo of oranges (16.1 percent), carrots (17.7 percent) and sugar with a 13.6 percent jump.
Between June and July, kerosene recorded the highest price increase, rising from Sh147.92 to Sh157.76 per litre, while petrol also went up from Sh178.19 to Sh187.37 per litre, indicating a notable rise in fuel costs.
At 4.1 percent, the inflation is within the government’s targeted range of between 2.5 percent and 7.5 percent. However, analysts have cautioned that rising fuel prices are likely to pile pressure on inflation if sustained.
Last month, the State disclosed that it had depleted the subsidy fund used to stabilise retail fuel prices, exposing consumers to volatile global shifts that have seen the cost of diesel and petrol jump by at least Sh8.67 per litre.
The government has failed to apply the subsidy for two consecutive months since May, with subsequent higher fuel prices setting the stage for sharper consumer prices, including those for transport, food and energy.
A drop in inflation to as low as 2.7 percent in October last year, coupled with the stabilising of the shilling at an average of under Sh130 to the dollar, had helped the Central Bank of Kenya to start lowering the Central Bank Rate (CBR). A drop in CBR has seen banks start to bring down the cost of credit.
