Power cost pushes up inflation rate
What you need to know:
- The rate has breached Central Bank of Kenya set target of 7.5 per cent stoking fears of rise in indicative lending rate CBR.
- In the period, the cost of electricity rose the most by 10.67 per cent.
The cost of living went up in July for the fourth consecutive month, on the back of double digit increase in the cost of electricity.
Data from the Kenya National Bureau of Statistics (KNBS) shows inflation rose to 7.67 per cent in July compared to last month’s 7.39 per cent.
The rate has breached Central Bank of Kenya set target of 7.5 per cent stoking fears of rise in indicative lending rate CBR, and also general increase in lending charges.
REVISION OF POWER TARIFFS
In the period, the cost of electricity rose the most by 10.67 per cent pushing up the housing, water, electricity, gas and other fuels index by 0.57 per cent.
“The increase in the cost of electricity was mainly attributed to revision of power tariffs,” KNBS noted. The food and non-alcoholic drinks index increased by 0.5 per cent due to the rise in prices of several food commodities.
The transport index rose by 0.35 per cent due to increase in the price of petrol and public transport fares.
The alcoholic drinks, tobacco and narcotics index, however, dropped by 0.35 per cent in the period due to continued decline in prices of miraa (khat).
