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Rising inflation hits Kenyan household purchasing power hurting demand for goods & services.

According to the latest report from The Kenya National Bureau of Statistics, June inflation rate climbed to 7.9 percent from 7.1 percent in May.

This is the highest ever recorded in 58-month and the first time the cost-of-living measure went above the upper limit target of 7.5 percent since August 2017 when it climbed to 8.04 percent due to drought.

The rise in inflation is attributed to the soaring of food and oil prices among other factors, leading to an increase in the price of basic commodities.


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According to data from the Kenya National Bureau of Statistics, between June 2020 and June 2021, Kenyan consumers paid 8% more for food and beverages, 14% more for transportation and 4% more for Housing, water and electricity.

The continuous jump in the cost of basic commodities will further narrow the shopping basket of many Kenyan households.

This automatically has a negative impact on good economic performance and negatively affects the poor. Because, many households will be forced to cut on non-essential expenditure amid negative growth in real wages.


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