Higher fuel prices in Kenya saw inflation rate grow by 6.1%

Kenya charges the highest taxes on fuel regionally.

0

Higher fuel prices in Kenya saw inflation rate grow by 6.1% www.financialstand.com

Kenya’s inflation quickened for the sixth straight month in March at 5.9 percent from 5.78 percent in February, data released by the Kenya National Bureau of Statistics (KNBS) showed on Wednesday.

However, it remains within the government’s target range of 2.5%-7.5%. The higher rate of inflation was attributed to higher fuel costs.

Higher fuel prices in Kenya saw inflation rate grow by 6.1% www.financialstand.com

During the month, the housing, water, electricity, gas, and other fuels index rose by 0.59 percent in the last one month. The transport index rose by 1.49 percent.

“The recent increase in fuel prices is expected to have a moderate impact on overall inflation,” Dr. Patrick Njoroge said Monday when the Monetary Policy Committee (MPC) to review the outcome of its previous policy decisions and recent economic developments, and to decide on the direction of the Central Bank Rate (CBR).

Prices of food and non-alcoholic drinks grew 6.7% due to increases in the cost of items such as mangoes and beef.

On the other hand, Kenyans have been told to brace up for hard times as the cost of fuel is projected to remain high in April.

Kenya charges the highest taxes on fuel regionally. Taxes and levies are the biggest contributors to the prices. As global oil prices escalate we expect the prices in Kenya to increase,” Mining and Petroleum CS John Munyes told the Senate Energy Committee on Wednesday.

Get real time updates directly on you device, subscribe now.

Leave a Reply

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More