Kenya: Cost of Living Rises in June On Higher Food and Fuel Costs

The cost of living for the month of June rose for the first time since the beginning of the year helped by rising prices of food, petroleum and house rent.

Official data shows that inflation increased to 5.80 per cent in June from 5.0 per cent a month earlier.

Inflation has been declining since December when it hit 8.01 per cent.

“Between May and June, food and non-alcoholic drinks’ index increased by 2.06 per cent,” the Kenya National Bureau of Statistics (KNBS) said.

“This resulted from increases in the prices of many food items which outweighed the decreases.”

Food takes up the largest share (36 per cent) of the basket of goods that is used to calculate inflation, meaning it is the main driver of the cost of living.

The energy regulator mid-June raised the prices of diesel, petrol and kerosene to match the rebounding global crude prices, piling pressure on motorists. READ: Growth in Hospitality propels Q1 GDP growth to 5.9pc

The KNBS data shows that electricity prices remained unchanged since January.

The average rent for a two-bedroom house stood at Sh20,056 in June up from Sh20,040 same month last year, representing a three per cent rise.

Cooking gas dropped to an average of Sh2,229 for 13kg cylinder compared to Sh2,393 last year.

At 5.80 per cent, June inflation falls within the central Bank of Kenya’s preferred range of between 2.5 per and 7.5 per cent.

Source: The Nation