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Kenyan inflation rises in March on food prices

31 March 2015, 15:00

Nairobi - Rising prices of vegetables, milk and other foodstuff following a spell of dry weather pushed Kenyan inflation above market expectations, official data showed on Tuesday.

The Kenya National Bureau of Statistics (KNBS) said in a statement that inflation rose to 6.31 percent year-on-year in March from 5.61 percent in the previous month.

The food and non-alcoholic drinks index rose by 2.65 percent on a monthly basis, driven higher by an increase in the cost of vegetables, milk and other food products, the statistics office said.

"The rise in prices was mainly as a result of the dry weather conditions experienced during the period," KNBS said.

On a monthly basis, the inflation rose 1.12 percent from February.

A Reuters poll had returned a consensus forecast of 5.90 percent for the year-on-year inflation rate.

Kenya has said it will not raise electricity costs, a key component in its inflation basket, despite a drought that is affecting water levels in its hydropower dams.

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- Reuters


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