Kenya says record inflation "very temporary"
hr01 hr02
Ads
Business in Africa
 
 

 

 

Email this article Print this page
Kenya says record inflation "very temporary" UPDATED 04 Jun 2008 | 12:39  
Kenya says record inflation

NAIROBI (Reuters) - The Kenyan government said on Wednesday the nation's decade-high inflation rate was a temporary phenomenon which should ease as early as July.

Fueled by a post-election crisis in January and February that disrupted agriculture, inflation soared to a year-on-year rate of 31.5 percent in May, the highest level in more than a decade in east Africa's largest economy.

But Finance Minister Amos Kimunya urged patience among Kenya's 36 million people, feeling the brunt of global food and fuel price rises as well as the effect of violence that paralysed their nation at the start of the year.

"We know that 87 percent of the inflation increase is accounted for by food only," Kimunya told reporters.

"But it's a very temporary situation. Immediately we get the first crops out to the market, there will be prices coming down and inflation will follow ... Probably by next month we should start seeing real improvement in food prices."

May's inflation was the highest since the early 1990s when then President Daniel arap Moi's government was printing large amounts of cash and a bogus minerals export scandal pumped even more money into the system.

SHARE THIS ARTICLE

Add a Bookmark Google   Post this Story to FaceBook Facebook

No comments have been posted about this Story

COMMENTS ON THIS STORY

Full Name:
E-Mail:
Rating: out of 5
Comment:
Related Articles

Kenya c.bank raises lending rate to 9.00 pct from 8.75

Kenya's opposition leader Raila Odinga speaks at the end of the 40th edition of Kenya Open Golf Championship at the Karen Country Club in Nairobi

Kenya PM says growth to rebound to 7 pct in 2009

Kenya's CFC, Stanbic banks announce start of merger

Zimbabwe dollar falls to new record low

Kenya stock market seen rising after Safaricom IPO

Anvil says plans to lift copper output to 100,000 tonnes

Kenya's Stanbic clears legal hurdles for CFC merger

Kenya's yr/yr inflation hits 31.5 pct on food

Aquarius says all workers at Everest mine at work

Keep logged onto www.moneybiz.co.za oremail [email protected] for further information, or perhaps suggest a topic weshould tackle.