From Standard Digital
Food prices have gone up sharply. Analysts say rise in inflation and the weakening of the local currency seen over the last week, might result in high lending rates.
The cost of living during the month of May went up driven by high electricity bills and sharp rise in price of food commodities. Data from the Kenya National Bureau of Statistics (KNBS) show that inflation rose to 7.3 per cent in May from 6.4 per cent in April, shooting past the Central Bank’s medium term target range of between 5-7 per cent due to rising food prices due to poor harvest, cost of energy and transportation. Analysts project further increases in price of food that could adversely affect the economy. Notable in pushing up inflation were electricity prices that went up by 21.7 per cent after the country started using power generated by thermal generators. Thermal generators use costly fossil fuels, with this cost being passed directly to the consumers. Food index This has been due to failure of the rains over the March–May long rains season that resulted in a dip in water levels at the Seven Forks Hydropower dams that are now generating power way below their capacity.
Food prices have gone up sharply. Analysts say rise in inflation and the weakening of the local currency seen over the last week, might result in high lending rates. [PHOTO: FILE/STANDARD] The cost of living during the month of May went up driven by high electricity bills and sharp rise in price of food commodities. Data from the Kenya National Bureau of Statistics (KNBS) show that inflation rose to 7.3 per cent in May from 6.4 per cent in April, shooting past the Central Bank’s medium term target range of between 5-7 per cent due to rising food prices due to poor harvest, cost of energy and transportation. Analysts project further increases in price of food that could adversely affect the economy. Notable in pushing up inflation were electricity prices that went up by 21.7 per cent after the country started using power generated by thermal generators. Thermal generators use costly fossil fuels, with this cost being passed directly to the consumers. Food index This has been due to failure of the rains over the March–May long rains season that resulted in a dip in water levels at the Seven Forks Hydropower dams that are now generating power way below their capacity.
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http://www.standardmedia.co.ke/business/article/2000123052/more-pain-for-kenyans-as-cost-of-living-soarsWritten by Macharia Kamau/Read more at: Standard Digital
