The rate of inflation accelerated to a three-month high of 6.27 percent this month fueled by costlier maize flour, carrots, beef, onions and electricity.
This was despite reductions in the cost of irish potatoes, cabbages, sukuma wiki, tomatoes, sugar and milk. On a month-on-month basis, consumer prices fell 36 basis points this month after reducing by 69 basis points in June.
The latest rate of inflation is within the government’s preferred target range of between 2.5 and 7.5 percent that is backed to maintain price stability in the economy.
This emerged as the shilling weakened further against the dollar due to end month dollar demand from the energy and manufacturing sector combined with surplus liquidity in the local money market.
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Commercial banks quoted the shilling at a mean of 104.30 to the dollar, compared with 104.10 during Wednesday’s close.
More to follow……