INCREASED food prices pushed up
The inflation touched 8.36 per cent mark- 0.86 per cent above the government's 7.5 per cent upper limit target- up from last month's 7.67 per cent in July, the KNBS said.
The growth in the cost of living overshot analysts' expectations for a much benign rise to near eight per cent, and will present a headache to the
Analysts expect the MPC to increase the present 8.5 per cent indicative CBR, set in
The committee will be walking a tight-rope given sustained pressure from high ranking government officials led by Deputy President
"It's interesting what decision the MPC will come up with given the hard stance taken by the government on interest rates," head of research at Sterling Capital Moses Waireri said. "Last month, we hinted at a likelihood of the CBR rate moving to between nine and 9.5 per cent and we still hold this position."
Sterling, in its report on
The spike in the cost of living was however majorly pushed by a 1.75 per cent jump month on month and 10.85 per cent year on year in food and beverage prices, according to KNBS data. A kilo of maize grain, goat meat, offals or matumbo, mangoes and processed milk are some of the food items whose prices rose by 11.3, 7.4, 6.8, 10.4 and 3.6 per cent, respectively, year on year.
"Electricity cost remained almost at the same level," KNBS acting director general
Housing and energy cost rose by 0.32 per cent month on month and 6.98 year on year while transport costs were up 0.73 and 11.68 per cent over the respective periods.
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