High food prices push October inflation to 6.47pc

The high cost of food has pushed October inflation to 6.47 percent.

This is the highest level of inflation since February when inflation stood at 6.84 percent.

Data from the Kenya National Bureau of Statistics (KNBS) shows that during the month the food and non alcoholic drinks index rose by 0.96 percent setting overall food inflation in October at 11.03 percent.

“This was attributed to increase in prices of several food items which outweighed the decreases,” KNBS said in a statement.

Nearly all food items during October registered significant price increases.

A two kilogram packet of maize flour was up 1.1 percent to an average price of Sh114.40 while the cost of a kilogram of sugar rose to Sh125.71.

Milk, beans and potato prices also rose to Sh55.18, Sh129.52 and Sh80.24 respectively.

Food takes up the largest share of goods used to calculate the cost of living.

Higher fuel prices during the month also drove up inflation.

“Despite notable fall in the cost of diesel, the Transport Index increased by 0.37 per cent in October 2016 compared to September 2016 mainly on account of increases in the pump prices of petrol,” KNBS said.

At 6.47 percent, the October inflation is still with the government’s band of between 2.5 and 7.5 percent.

In October, houses consuming an average of 50 kilowatt-hours of electrify saw their power bills rise to Sh528.16 while those consuming 200 kilowatt-hours of electricity paid Sh3,374.14.

The average cost for a one bedroom house also rose to Sh4,032.83.