A new survey by the Central Bank of Kenya (CBK) indicates that Kenyans anticipate a general increase in prices of several food items in June 2024.
The Agriculture Sector Survey conducted in May predicts that prices for items such as non-aromatic (unbroken) white rice, white bread, brown bread, aromatic white rice, and wheat flour (both white and brown), and green maize will rise by an average of 20 percent. Rice prices, in particular, are expected to surge by nearly 40 percent, attributed to the adverse impact of excess rainfall on domestic production.
Bread prices are also expected to rise due to flooding affecting domestic wheat production.
CBK conducted the survey to gather information on current and expected developments in food prices to inform monetary policy decisions. A total of 268 respondents, including farmers, retailers, and wholesalers, were interviewed in April and May.
Conversely, respondents expect a significant decline in prices of loose maize flour, loose maize grain, sifted maize flour, and fortified maize flour in June, assuming that market supply will improve due to favorable weather conditions.
The survey also indicates expected declines in prices of vegetables, milk, and sugar. However, onion prices are projected to remain high in June. Some respondents believe that high onion prices will incentivize increased production, potentially leading to a future price decline.
For sugar, a minimal price drop is expected, as prices had already declined from high levels and are likely to stabilize. Data from the Kenya National Bureau of Statistics (KNBS) shows that the price of a kilo of sugar fell from Ksh.209.55 in January to Ksh.200 in February, due to increased production following a five-month ban on the harvest of immature canes.
Overall, 57 percent of respondents anticipate a decrease in the inflation rate over the next three months, while 43 percent expect an increase. The inflation rate in May stands at 5.1 percent, according to KNBS.
Press Corp 