Kenya’s inflation rate surges to 19.72pc


Kenya’s inflation has increased further for the 13th month in a row to 19.72 percent up from 18.91%.

This means the average cost of goods and services is up nearly 20 percent from what they were a year ago.

According to the Kenya National Bureau of Statistics, the increase was driven by rising cost of food, transport, energy and house rent.

Despite the Central Bank of Kenya revising upwards the Central Bank Rate in a bid to contain rising inflation and weakening shilling, Kenya’s overall inflation has this month risen further to 19.72 percent.

According to the Kenya National Bureau of Statistics, over the past one month, the cost of transport and food witnessed the highest increase to drive inflation upwards.

KNBS director Anthony Kilele says: "Transport index increased by 2.19 percent between October and November 2011 due to continued increases in the cost of petrol, diesel, taxi charges and Matatu fares." Besides, there was notable fall in the price of among other maize floor and sukuma wiki.

However, the KNBS says there was an increase in the price for several food products like bread, beef, sugar, wheat flour and chicken, which drove up the food and non alcoholic food index by 1.35 percent.

"The average cost of a kilogram beef with bones, for instance rose from Sh. 299.56 to Sh. 309.85 in November 2011," KNBS said.

Further, the month witnessed an increase in the cost of electricity, house rents and cooking fuel. KNBS notes that the cost of cooking gas, kerosene and charcoal was up by up to 7 percent.

The restaurants and Hotels index was up 4.48 percent mainly driven by the cost of food and energy.

Last month, overall inflation was at 18.91 percent, but now with the increase, Kenyans will be watching out for the measures that the Monetary Policy Committee take when they meet this Thursday.



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