Producer Prices Rise By One Per Cent in Quarter Two

HIGH cost of manufacturing food products, beverages and textiles increased the producer prices by 1.22 per cent in the second quarter of 2015 to 111.33 points from 109.99 points recorded in the first quarter, the Kenya National Bureau of Statistics data shows.

The producer price index published yesterday shows the year on year inflation or change in the prices of goods and services, from June 2014 to June 2015 was 1.98 per cent mainly caused by manufacture of textile and manufacture of furniture.

“Under manufacture of food products the producer prices for dairy products and grain mill products had the highest increase while under manufacture of beverages increase in prices of mineral water and other bottled water caused the index to rise,” KNBS noted.

According to the consumer price index for June, food and non-alcoholic drinks’ prices decreased by 0.1 per cent while housing, water, electricity, gas and other fuels’ index, increased by 0.37 per cent.

The overall month on month inflation rate stood at 7.08, 6.87 and 7.03 per cent in April, May and June, respectively.

Higher utility bills coupled with transport costs are blamed for pushing up last month’s cost of living.

KNBS says the PPI measures the gross changes in the trading price of products on the domestic and the non-domestic markets, at all stages of processing.

Between April and June the prices of manufacturing food products, beverages and textiles increased by 1.93, 3.59 and 7.85 per cent each.

During the review period the prices of basic iron and steel, fabricated metals and lubricating petroleum oils decreased by 5.01, 3.18 and 13.6 per cent, respectively while that of tobacco products increased by 2.23 per cent.