Kenyans on The Receiving End as Commodity Prices Hit The Roof­­­­

By Japheth Musyoka

The rise in price of basic commodities in the country has raised the inflation index to 7.9 percent.

­ The overall inflation by the was 7.9 per cent in June compared to last month’s 7.1 per cent.

Figures from Kenya National Bureau of Statistics, show that the price of some products such as 2Kg Soko maize flour increased from Ksh 148 in April 2022 to Ksh 205 by the end of June this year.

Relative to May 2022, prices of carrots and cooking oil (salad) increased by 4.7 per cent in June 2022.

Food and non-alcoholic beverages which are the country’s most consumed goods have been strong in production however their prices have gone higher.

Rising food costs and financial emergencies can significantly affect food and nourishment security as these drive the weakest families further into neediness and debilitate their capacity to get to satisfactory food.

These difficulties can compel unfortunate families to auction resources or forego different fundamentals that make an enduring destitution trap that turns out to be ever more earnestly to get away. Especially for youngsters, even transient deteriorating of nourishment can prompt long-lasting hindering impacts.

In February 2021, 500 grams of cooking fat retailed at Ksh 114.57 while in February 2022, the prices moved to Ksh. 149.44 Currently, 500 grams of cooking fat ranges from Ksh 200-215. The inflation rate in this commodity has increased in a year by 30.43%. During the same period, prices of onions-leeks and bulbs and potatoes (Irish) dropped by 5.3 per cent and 4.8 per cent, respectively.

The expansion in these expenses can thus influence the costs of various labor and products, as makers might give creation expenses for customers. The degree to which oil cost expands lead to utilization cost increments relies on how significant oil is for the development of a given kind of good or administration.

Some companies such as Pwani Oils have temporarily shut down their operations due to shortage of raw materials as a result of challenges in accessing dollars to pay suppliers.

Furnishings, Household Equipment and Routine Household sectors in the country have also grown by 1.5 per cent between May 2022 and June 2022. This is due to an increase in prices of laundry/bar soap by 4.2 per cent and detergents 2.6 per cent.

As recorded by the Kenya National Bureau of Statistics in the monthly inflation rate dataset for the Consumer Price Index for May 2022-June 2022, The Housing, Water, Electricity, Gas and Other Fuels’ Index, increased by 0.9 per cent. In May 2022, 1 liter of petrol retailed at Ksh 147.40 while in June 2022, the prices moved to Ksh .159.12. During this period, the price of kerosene/paraffin rose by 7.5 per cent. 1 liter of kerosene retailed at Ksh 116.27 while in June 2022, the prices moved to Ksh .127.00

The fuel cost increments can likewise smother the development of the economy through their impact on the market interest for merchandise other than oil. Expansions in oil costs can push down the stockpile of different products since they increment the expenses of delivering them. In financial matters wording, high oil costs can move up the stockpile bend for the labor and products for which oil is an information.

Due to increase in prices of diesel and petrol, Transport Index increased by 0.9 per cent between May 2022 and June 2022.By this the common wananchi has been really affected.

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