Kenya’s inflation rises to 4.95pc as tough economic times bites on

Kenya’s inflation rises to 4.95pc as tough economic times bites on

October 31, 2019 0 By mykenyancareers
TUSKER BOTTLE - Kenya’s inflation rises to 4.95pc as tough economic times bites on
Kenya’s year-on-year inflation has risen to 4.95 percent, on account of the rise in the prices of alcoholic beverages, tobacco and narcotics/FILE

NAIROBI, Kenya, Oct 31 – Kenya’s year-on-year inflation has risen to 4.95 percent, compared to September’s 3.83 percent, on account of the rise in the prices of alcoholic beverages, tobacco and narcotics.

Kenya National Bureau of Statistics (KNBS) says the index of the items increased by 1.97 percent, due to increase in prices of cigarettes, following a hike of excise tax.

Other commodities that influenced the jump in inflation include several foodstuffs, among them maize grain-loose, maize grain-sifted and tomatoes whose indices increased by 5.82, 4.58, 4.44 percent respectively.

At the same time, the alcoholic beverages, tobacco and narcotics index increased by 1.97 percent, due to increase in prices of cigarettes, following a rise of excise tax.

“The year on year food and non-alcoholic drinks inflation increased from 6.31 percent in September 2019 to 8.74 percent in October 2019,” KNBS says.

The bureau however noted a 0.27 percent decrease on the transport index, owing to the decrease in pump prices of diesel and petrol.

Despite the rise, the rates are within the government’s preferred band of 2.5-7.5 percent for inflation to maintain price stability in the economy

Last month, the central bank held its benchmark lending rate at 9.0 percent, saying inflation expectations were within the target range.