East African countries are facing a food supply crisis, which is bound to increase the cost of living and push up governments' budget deficits this year.
Much of the region has gone through a dry spell after the delay of the long rains (March-May), with poor harvests forecast. While the region's average cost of living remained relatively unchanged during the three months to March, inadequate food supply and rising oil prices may lead to higher inflation in the coming months.
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