Joseph Bonyo
2 July 2008
Nairobi — The pressure on food prices for Kenyans reduced in the month of June, marginally bringing down the rates of inflation to 29.3 per cent.
According to information from the Central Bureau of Statistics, the decline in price index for the food and non-alcoholic beverage largely contributed to the new figures.
The prices of tomatoes, English potatoes and onions largely recorded a decrease in price in the period under review. The average price of a kilogram of tomatoes decreased by 14 per cent to Sh64.21 compared to Sh74 it sold at in May.
On the other hand the prices of English potatoes and onions declined by 10 and 8 per cent respectively. "These and other price decreases effectively outweighed notable increases in the prices of some food items including carrots, maize grains and rice, that rose by 9.2 per cent, 6.1 per cent and 6 per cent respectively," reads the statement from the bureau.
Since January this year, the inflation rates have been on an upward trend every month, reaching unprecedented highs in March at 21.6 per cent. In May, the rates were recorded at 31.5 per cent, alarming the already over-burdened consumers.
High fuel prices in the global market that have now been replicated in the domestic market have been underscored as contributors to the inflation. Local high food prices witnessed in the past five months have also been an indicator.
During his last budget readings, embattled Finance minister Amos Kimunya reduced import duty on certain commodities to ease the pressure on food prices. The minister reduced import duty on wheat by 10 per cent, as well as zero rating bread and rice. However importers of the commodity were quick to point that the relief would only be felt in August.
Fuel and power index another significant indicator in the basket increased by 2.9 per cent due to the continued rise in local petroleum products.
"The price of diesel increased by 6 per cent to Sh92.95 in June compared to Sh87.69 per litre it sold in May," adds the statement.
Expectation is high for the sustained drop in the inflation rates in the coming months, due to increased government concern in trying to bring down prices of common commodities like maize. Already plans are underway to import in excess of three million bags of maize to shore up the national grain stock.
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