Rice, bread, other food items Kenyans expect prices to rise in June - CBK survey

Rice, bread, other food items Kenyans expect prices to rise in June - CBK survey

Kenyans anticipate a general increase in prices of several food items in June 2024, a new survey by the Central Bank of Kenya (CBK) shows. 

According to the Agriculture Sector Survey conducted in May, items such as non-aromatic (unbroken) white rice, white bread, brown bread, aromatic white rice, wheat flour (both white and brown) and green maize are expected to hike in prices by an average of 20 per cent. 

Rice was highlighted as the major food item whose prices will shoot by nearly 40 per cent. 

This, the survey noted, was attributed to the adverse impact of excess rainfall on domestic production. 

Bread prices are also expected to rise due to the impact of flooding on domestic wheat production. 

CBK undertook the survey to gather information on current and expected development in prices of food items to inform monetary policy decisions. 

As a result, a total of 268 respondents comprising farmers, retailers and wholesalers were interviewed to collect the information in April and May. 

In contrast, the respondents expected a substantial decline in prices of loose maize flour, loose maize grain, sifted maize flour and fortified maize flour in June.

“This expectation was informed by the presumption that market supply will continue to improve supported by favourable weather conditions experienced in the country,” the survey read in part. 

In the survey, prices of vegetables, milk and sugar are also expected to decline. However, farmers noted that onion prices would remain elevated in June. 

Albeit, some respondents opined that the high cost of onions would incentivise farmers to produce more onions and hence lead to a decline in prices. 

For sugar prices, the respondents expected that the drop would be of a minimal margin as the commodity had already declined from high levels and would likely stabilise. 

Data from the Kenya National Bureau of Statistics (KNBS) showed that a kilo of sugar dropped from Ksh.209.55 in January to Ksh.200 in February. 

The drop was necessitated by a boost in production following a five-month ban on the harvest of immature canes which paved the way for full maturity of crops. 

In general, 57 per cent of respondents anticipated a decrease in inflation rate in the next three months against 43 per cent who expected an increase. The inflation rate in May stands at 5.1 per cent, according to KNBS.


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