Bad news for Kenya: Kenya’s inflation rises to 4.51 percent
Posted: Tue Dec 28, 2010 4:08 am
Kenya’s year-on-year inflation rate rose in December due to higher food and non-alcoholic beverages, the statistics office said at the weekend, and analysts expect it to rise further in coming months due to costlier fuel.
The inflation rate rose to 4.51 percent in December from 3.84 percent in the previous month.“This was attributed to cost increases recorded in respect of a number of food products including tomatoes, beef, milk and cooking fat,” Kenya National Bureau of Statistics said in a statement.
Energy and transport costs also rose during the period, the bureau added, on the back of jumps in prices of cooking gas, kerosene and bus fares.The food and non-alcoholic beverages index rose 7.84 percent.
Kenya’s headline inflation rate has been below the Central Bank’s 5 percent medium-term target since March this year, hitting a 2010 low of 3.09 percent in October.
Analysts said high international oil prices could push the rate up once these filter into local markets.Crude oil was trading at its highest levels in more than two years on Friday, supported by cold weather across the globe, appetite for risk assets and no signals from OPEC it was prepared to arrest the rally.
The inflation rate rose to 4.51 percent in December from 3.84 percent in the previous month.“This was attributed to cost increases recorded in respect of a number of food products including tomatoes, beef, milk and cooking fat,” Kenya National Bureau of Statistics said in a statement.
Energy and transport costs also rose during the period, the bureau added, on the back of jumps in prices of cooking gas, kerosene and bus fares.The food and non-alcoholic beverages index rose 7.84 percent.
Kenya’s headline inflation rate has been below the Central Bank’s 5 percent medium-term target since March this year, hitting a 2010 low of 3.09 percent in October.
Analysts said high international oil prices could push the rate up once these filter into local markets.Crude oil was trading at its highest levels in more than two years on Friday, supported by cold weather across the globe, appetite for risk assets and no signals from OPEC it was prepared to arrest the rally.
