Written by Margaret Wahito | From Capital FM
An investment advisor is projecting that Kenya’s inflation rate will go up in the first half of 2014 and peak around 10 percent by June.
PineBridge Investment Limited Investment Manager Joel Warutere pegged his prediction on both internal and external factors including high cost of food items, high oil prices and the continued impact implementation of Value Added Tax (VAT) Act.
He said the rising trend expected to begin in the first quarter all the way to June this year, will however start dropping and remain stable towards the end of the year.
“Any rise in the cost of living normally impacts the lower income group, who are the majority class,” Warutere said.
Inflation in the better part of 2013 remained modest underpinned by relatively stable energy prices and moderation in food inflation.
“As at December, headline inflation closed around 7.15 percent compared to its September close of 8.29 percent. In December, electricity costs declined significantly due to waiving of inflation levy and reduction of forex adjustment costs,” Warutere said.
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