HIKED PRICES

Wanjiku affected most by effects of unstable economy

Inflation rates rise one month and fall the next, affecting price of essential items

In Summary

• This comes even as young people are graduating unsure if they will be employed. 

• With such rates, we cannot afford to lose more money to graft and irrelevant projects that mostly end up stalling or not giving us value for our money. 

A file photo of shoppers at a supermarket in Mombasa.
UNPREDICTABLE PRICES: A file photo of shoppers at a supermarket in Mombasa.
Image: FILE

The economy of Kenya has been a very sensitive topic for the last couple of years with the rate of inflation rising every day and the value of the shilling not improving.

This comes even as young people are graduating from universities to sit unemployed at home as the number of vacancies doesn't match the growing number of graduates.

According to an April 2018 report by the Kenya National Bureau of Statistics, the inflation rate has been in unpredictable over the months under study because of various factors like the income levels and the revenue the government generates.

In January, inflation was at 4.83 per cent. It dropped to 4.46 per cent and further to 4.18 per cent in February and March respectively. 

In April and May, the rate was at 3.73 per cent and 3.95 per cent respectively signifying an increase which shot to 4.28 per cent in June. 

In the second half of the year, the rate dropped from 4.35 per cent in July to 4.04 per cent in August. The rate shot to 5.70 per cent the following month leading to a hike in prices of most products such as petroleum products. 

In October, it was at 5.53 per cent and 5.58 per cent in November. December saw a rise in inflation to 5.71 per cent. 

With the new year, the rate dropped to 4.70 leading to a drop in prices of petrol by a shilling per litre. It dropped further in February to 4.14 but rose again to 4.35 per cent in March. April saw an ultimate high of 6.58 per cent, marking the highest rate that financial year.

It is clear that inflation rates are dependent on factors that affect the country's economy and with Kenya's debt, there is a need to find a way to cushion our pockets from the difficult times that come with high inflation and ultimate price hike of essential products. 

With such rates, we cannot afford to lose more money to graft and irrelevant projects that mostly end up stalling or not giving us value for our money. 

Nairobi