Rising Food Prices Increase Inflation Rate to 8.5%

The country’s inflation rate for the month of August increased to 8.5% as the price of cereals increased.

This information was revealed in the Consumer’s Price Index released by the National Bureau of Statistics for the month of August. This is the sixth consecutive month of year-on-year increase in inflation index.

The CPI report stated, “In August 2014, the CPI, which measures inflation, recorded an uptick from the previous month. Prices rose by 8.5% (year-on-year), up 0.2 percentage points from 8.3% recorded in July.
“This was the sixth consecutive month of a faster increase in the pace of the headline index relative to the previous month.”

Prices have been increasing continuously, though at a slow pace, since the decline of the headline in January. The increase has been by 0.1% points (year-on-year) each month between February and July.

The food index prices increased by 10%, marginally higher than the 9.9% recorded in July. This, the report added, was the highest price increase (year-on-year) on a monthly basis since July of 2013.

On a month-on-month basis, the food prices increased by 0.6 per cent in August, down from 0.8 per cent recorded in July.

“On a month-on-month basis, the highest price increases were recorded in the coffee, tea and cocoa, fruits, meats, fish, oils and fats groups.

"The average annual rate of change of the food sub-index for the 12-month period ending in August 2014 over the previous 12 month average was 9.5%. The 12-month rate of change has held steady for the previous three months” stated the report