An exhibitor from Amiran Kenya sets his fresh produce during the Annual Naivasha Horticulture Trade Fair held in Naivasha, Nakuru County recently. Kenyan fruits and vegetables face ban in the EU market due to failure to meet set regulations. Photo: Antony Gitonga/Standard
An exhibitor from Amiran Kenya sets his fresh produce during the Annual Naivasha Horticulture Trade Fair held in Naivasha, Nakuru County recently. Kenyan fruits and vegetables face ban in the EU market due to failure to meet set regulations. Photo: Antony Gitonga/Standard

Kenya’s producer price index, which measures inflation at wholesale level, rose by 1.52 percent in the first quarter of this year, the country’s national bureau of statistics said Thursday. food
“The main contributors in the first quarter increases were manufacture of food, beverages, rubber and plastics products. Under manufacture of food products, the producer prices of tea and dairy products had the highest increase,” said the Kenya National Bureau of Statistics (KNBS).
During the period, Kenya faced a dry spell that saw the cost of production of various products including tea and milk go up.
However, according to the KNBS, although the index under manufacture of food increased generally over the three months, prices of wheat flour, maize flour and sugar declined.
“The overall Producer Price Inflation (PPI) increased from 108. 56 points in the fourth quarter 2014 to 110.21 points in the first quarter 2015,” said the bureau.
Over the three months, the cost of production of electricity decreased by 2.09 percent while manufacture of lubricating petroleum oils declined by 13.6 percent.
However, as the PPI increased, the country’s year-on-year inflation stood at 1.09 percent mainly caused by declines in the prices of fuel, some food products and manufacture of nonmetalic mineral products.
PPI measures the gross changes in the trading price of products on the domestic and the non-domestic markets at all stages of processing. The price changes are measured from the perspective of the producer.
The rise in producer prices has pushed up Kenya’s consumer inflation from 5.61 percent in February to 6.31 percent. According to the KNBS, consumer inflation has risen mainly due to increases in the cost of vegetables and milk.
“The rise in prices was mainly as a result of the dry weather conditions experienced during the period. However, prices of sugar, maize flour and other food items dropped during the period under review,” said KNBS. Enditem

Source: Xinhua

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