Kenya's Inflation: William Ruto's Government Predicts Cost of Living to Ease in 2023

 

This is according to a Parliamentary Budget Office (PBO) study, which noted the primary causes of inflation in 2022 were the weakening of the shilling and unfavourable weather conditions. The survey indicated that tighter monetary policy, including the raising of the Central Bank Rate (CBR) to 10.5%, increased interest rates on government assets and eased inflationary pressures. "To avert a further escalation in inflation, the CBK has sustained a tightened monetary policy by maintaining the CBR rate at 10.5% since June 2023," it stated, as reported by Business Insider. What was Kenya's inflation in August? Kenya's inflation declined to 6.7% in August, down from 7.8% reported in July. Data released by the Kenya National Bureau of Statistics (KNBS) on Thursday, August 31, showed the costs of most basic commodities reduced in August compared to July. "Overall year-on-year inflation for August 2023 is 6.7%," KNBS said in a statement posted on X. The prices of cooking oil (salad) decreased by 1.2%, fortified maize flour (6.1%), maize grains (8.2%), potatoes (3.5%), beans (1.3%) and cabbages (2.6%). For the non-food items, only the 13kg cooking gas recorded a reduction in prices by 2.8% after the government slashed levies on Liquefied Petroleum Gas (LPG).  Fuel prices in Kenya Elsewhere, the Energy and Petroleum Regulatory Authority (EPRA) announced a record increase in pump prices. EPRA increased the price of petrol by KSh 16.96, diesel by KSh 21.32 and kerosene by KSh 33.13 per litre. Petrol now retails at KSh 211.64, diesel KSh 200.99 and kerosene KSh 202.61 per litre in Nairobi. EPRA director-general Daniel Kiptoo said the high pump prices were outside the government's control as he attributed the increase to oil cuts by the Organisation of the Petroleum Exporting Countries (OPEC).    BY TUKO NEWS