Kenya’s overall inflation for the month of July increased to 6.39 percent compared to last month’s 5.80 percent.

The Kenya National Bureau of Statistics attributed the rise to an increase in food and non alcoholic drinks whose index went up by 1.12 percent in the month of July.

According to KNBS, the increase was as a result of increase in prices of some food items which outweighed those that declined. The year on year food inflation was 10.78 percent.

Transport costs also increased by 1.13 percent mainly driven by prices in pump prices of petrol and diesel.

“On average, prices of diesel rose from Sh74.69 per litre in June to Sh84.20 in July 2016 marking a 12.73 percent increase.”


On the other hand, housing, water, electricity, gas and other fuel’s index, decreased by 0.15 percent. KNBS attributed this to lower prices of electricity and cooing gas in July 2016 compared to June.

The rates come at a time when the Central Bank of Kenya has predicted for overall inflation to remain within the government’s target range in the short-term, in spite of expectations of temporary upward pressures on consumer prices.

Central Bank’s Governor Dr Patrick Njoroge attributed it to recent increases in fuel tax

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