Kenya’s inflation up in November as food prices, rent rise

Kenya’s Consumer Price Indices (CPI) rose 0.52 per cent from 162.13 in October 2015 to 162.97 in November 2015, the highest in the last one year, owing to rising food prices and weak currency ended a slowdown.

According to data released by the Kenya National Bureau of Statistics (KNBS), between October and November 2015, Food and Non-Alcoholic Drinks’ Index increased by 1.08 percent. This aggregate increase in the food index was a result of rise in prices of several food items which outweighed the decreases. A kilogramme of potatoes which sold for Sh73.77 ($0.72) in October increased to Sh78.14 ($0.77) in November while a kilogramme of tomatoes which sold at Sh100.72 in October sold for Sh107.56 in November.

Inflation rose to 7.32 percent year-on-year in November from 6.72 percent the previous month.

Although November’s rate of inflation remains inside the government’s preferred range of 2.5-7.5 percent, cost of living has continued to rise.

According to a new study released by Ipsos, 36 percent of Kenyans believe the cost of living is the top-most problem facing the country. Data released by KNBS show that as food prices increased in Kenya, rent also did. However, electricity rates dropped, with 50 KWh costing Sh545.90  in November from Sh602.74 a month earlier. The price of gas also dropped as 13 Kg was bought at Sh2,386.66 ($23.4) in November, down from Sh2,401.31 the previous month.

“The Transport Index decreased by 0.37 percent in November 2015 compared to the previous month. This was mainly attributed to decreases in the cost of petrol and diesel,” KNBS said