/ 2 July 2007

Kenya inflation rate rises to 11,1%

Kenya’s annual inflation rose to 11,1% in June from 6,3% in May on the back of price increases in food, alcohol and tobacco, the Kenya National Bureau of Statistics said on Monday.

However, underlying inflation that excludes food prices fell to 5,2% from 5,7% in May.

”Food and non-alcoholic index rose by 1,8% in June mainly due to increase in prices of cooking fat, cabbages, sugar, wheat flour and English potatoes,” the Bureau said in a statement.

”The alcohol and tobacco index increased by 5,1% in June compared to May due to the recent rise in the prices of beer and cigarettes,” it added.

Last month, the government announced an increase in taxes levied on the alcoholic drinks and cigarettes.

The bureau collects data every second and third week of the month from shops in 13 towns in the coutnry. It is seen as representing the spending behaviour of urban Kenyan households. – Reuters