Treasury sees inflation up 2pc on new fuel tax

The new VAT on fuel raised the retail price of petrol by 12 per cent per litre. FILE PHOTO | NMG

The Treasury on Wednesday forecast inflation to jump by up to two percentage points on the back of the new fuel tax which has raised transport costs and pointed at higher prices of goods.

This means inflation will rise to 6.04 per cent from the 4.04 per cent recorded in August in what will see consumers cutback on costly goods and ultimately dim Kenya’s economic growth momentum

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