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. |