Inflation Pressure at an All-Time High as Price of Mazie Flour Reaches Record Highs

Kenya’s inflation rate for August 2022 was 8.5%, driving the cost of maize flour to an all-time high. This price is the highest in 63 months, according to suppliers of maize flour, and the heaviest price increase. Kerosene changed by 30% and is now the second-most popular item in Kenya. Inflation remained high in August and reached a five-year high due to the high price of food and gasoline. The monthly inflation rate was much greater than the planned range of 2.5 to 7.5 percent, according to the Kenya National Bureau of Statistics (KNBS).

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Between July 2022 and August 2022, the Consumer Price Index (CPI) grew by 0.4%, from 125.05 to 125.58. The CPI counts the increase or decrease in price as a percentage for a selection of products and services that households often use. Between July 2022 and August 2022, there was a 0.5% increase in the Food and Non-Alcoholic Beverages Index from month to month. Mango prices rose by 4.1%, 4.6%, and 4.7% in August 2022, respectively, as did the prices of sugar, mangoes, and loose maize flour. Carrot and onion prices fell by 6.4% and 2.4%, respectively. The alcohol, tobacco, and drugs index rose by 0.7% between July 2022 and August 2022 due to an increment in beer prices. A kilo of maize flour cost Ksh78.4, while a kilo of sugar cost Ksh135.18 during the month.

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The cost of living rises because Kenya is a net importer of intermediate products and raw materials for industrial usage in the production of essential domestic commodities like cooking oil. Additionally, it spends vast sums of money importing a wide range of things, like wheat, second-hand clothing, petroleum products, and automobiles, the price of which is growing as the value of the shilling declines against the dollar. In a government short on funds after failing to draw more than Sh180 billion of the anticipated foreign debt in the year ended June, stopgap measures like corn and fuel subsidies would be revisited when the new President takes office.

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