There has been a rise in the cost of living again this month, with the inflation rate peaking at 6.91 per cent from 6.57 per cent. The spike in the cost of living is significantly attributable to the recent unprecedented jump in fuel prices,s which sent the average cost of petrol past Ksh.135 per litre. The high costs of fuel have pushed up the transport prices. Furthermore, the cost of housing, water, electricity, gas and other fuels’ index has shot up.
September’s inflation rate is the highest recorded since February 2020. Food costs have meanwhile stubbornly remained high.Other divisions to register a jump in prices over this period have included restaurant and accommodation services, personal care, transport & communication and alcoholic beverage. Some food items that have seen costs jump in the period include carrots, oranges, cabbages and onions.On the flip-side, the cost of sifted maize flour, tomatoes and spinach have marked a cool-down in September.
The Governor Peter Njoroge of Central Bank (CBK) started the The Central Bank of Kenya (CBK) is expected to keep its benchmark lending rate- the Central Bank Rate (CBR) unchanged for the 10th straight time.“The current principal drivers would not react to monetary policy, its not like we are sitting doing nothing. We can use monetary policy to constrain local demand so as to have a lesser impact on inflation. In effect this would be demand side management,” he said on Wednesday.
In doing so, the CBK has brushed aside rising inflationary pressures both domestically and internationally, noting inflation expectations remain anchored in the medium-term range of 2.5 to 7.5 per cent. Although Analysts widely anticipate a hold in the key interest rate when the reserve bank stages its Monetary Policy Committee (MPC) bi-monthly meeting on Tuesday as they cite the need for extended support to the economy by the bank.