Kenya: High food and fuel prices push inflation rate to 7.1%

Rising food and fuel prices have pushed the inflation rate to 7.1% in May as the high cost of living continues to erode consumption power.

The inflation — a measure of annual changes in the cost of living – rose from 6.47% in April, driven mainly by food, transport and fuel prices, according to data released by the Kenya National Bureau of Statistics.

“The rise in inflation was mainly due to increase in prices of commodities under; food and non-alcoholic beverages (12.4%); furnishings, household equipment and routine household maintenance (7.9%); transport (6.4%) and housing, water, electricity, gas and other fuels (6.0%),” KNBS said.

The average prices of key foodstuffs shot up compared to April, with a 2kg packet of sifted maize flour rising 6.9% to sell at Sh147.57 in May, a litre of cooking oil was up 5.3% to Sh370.71, while a 500ml packet of milk sold at Sh57.30, up 3.7%.

Transport fares also went up in tandem with the increase in prices of petrol, diesel and kerosene.

The Central Bank of Kenya on Monday raised its policy lending rate by half a percentage point to stem rising inflation and stabilize the shilling.