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Bread, meat prices push inflation to 8% – NBS

By BusinessNews Staff on June 18, 2014

The National Bureau of Statistics on Monday released the Consumer Price Index for the month of May, stating that increases in the prices of bread, meat and cereals had pushed up the country’s inflation rate to eight per cent.

The CPI report noted that the eight per cent recorded in May represented an increase of 0.1 percentage point over the 7.9 per cent recorded in April.

Since a decline of the headline index in January, the report stated that prices had continued to trend upwards, however, at a slow pace, increasing by 0.1 percentage points (year-on-year) each month between February and May.

The report stated that on a month-on-month basis, the highest price increases were recorded in bread and cereals, fruit, soft drinks and meat groups.

It stated, “In May 2014, the CPI, which measures inflation, was marginally higher when compared with April 2014. Prices rose by eight per cent (year-on-year) in May, from 7.9 per cent recorded in the previous month.

“Since a decline of the headline index in January, prices continue to trend upwards, albeit at a slow pace, increasing by 0.1 percentage points (year-on-year) each month between February and May.

“The price increases seen in May were as a result of higher prices in groups that contribute to both the Food and Core sub-indices.”

Specifically, the report stated that food prices edged higher to 9.7 per cent from 9.4 per cent in April.

Prices were pushed higher as a result of higher prices in the bread and cereals, fish, dairy, fruits and vegetable groups.

The price increases in the food sub-index were, however, weighed down by relatively slower increases in the meat, oils and fats, potatoes, yams and other tubers classes.

On a month on month basis, the NBS said the urban and rural indices had increased by 0.8 per cent and 0.77 per cent, respectively, which were about 0.2 percentage points higher than rates recorded in April.

[Punch]

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