Fuel scarcity pushes inflation to 9.2%

The monthly inflation rate has inched by 0.2 per cent in June from the May figure of 9 per cent to 9.2 per cent, National Bureau of Statistics (NBS) Consumer Price Index (CPI) indicated yesterday. The 0.2 per cent increase in prices was recorded in consumable items such as non-alcoholic beverages triggered by increase in transportation cost.

In the first half of the year, headline index has increased by 8.6 per cent, 0.7 percentage points higher from rates recorded during the corresponding period in 2014. NBS attributed the development to scarcity in the supply of Premium Motor Spirit (PMS) commonly referred to as petrol which has continued to impact on food prices.

The Food Sub-index rose to 10.0 per cent (yearon- year) in June, up by 0.2 percentage points from 9.8 per cent in May. On a month-on-month basis, the food Sub-index increased by 1.1 per cent, maintaining the high pace of increase recorded in May. The highest price increases were recorded in the vegetables, fish, bread and cereals, and potatoes, yam and other tuber groups. The average annual rate of change of the Food sub-index for the 12-month period ending in June 2015 over the previous 12-month average was 9.5 per cent.

“The pace of advances recorded by the “all items less farm produce” or core sub-index edged higher in June. The Core Sub-index increased by 8.4 per cent (year-on-year), marginally higher from May with the highest pressures observed in the Transportation, Education and Miscellaneous Good and Services divisions.

The pace of increases slowed in multiple divisions as well, such as Clothing and Footwear, Housing Water, Electricity. Gas and Other Fuels, as well as other divisions. “On a month-on-month basis, the pace of the increase in the Headline index eased, increasing by 0.9 per cent in June from 1.1 per cent recorded in May with largest increases observed in the Food and Non-Alcoholic Beverages, Transportation and Miscellaneous Goods and Services,” NBS data revealed.

The largest increases were recorded in the fuels and lubricants for personal transport equipment (which includes PMS), liquid fuel (kerosene), solid fuels (charcoal), maintenance and repair of personal transport equipment and passenger transport by road groups. The average 12-month annual rate of rise of the index was recorded at 7.0 per cent for the 12-month period ending in June 2015, unchanged from the 12-month rate recorded in May.