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Bread, Rice, Cooking Oil Among Food Prices Set to Increase in June - CBK

13 June 2024

Five major food items are set to increase in price this June following supply disruptions that the recent heavy rains have occasioned.

As detailed in the Agriculture Survey that was conducted by the Central Bank of Kenya among the food chain stakeholders, rice is among the food items that will remain elevated for the month.

It was explained that rice farms were adversely affected by the floods, hence the projections for the price increase.

Kenyans are currently purchasing a 1kg packet of rice at an average of Ksh260.

On the other hand, food stakeholders reported that the rains affected many wheat farms, hence the anticipated increase for white and brown bread.

A 400-gram bag of bread has been retailing at Ksh65.

"They (stakeholders) expect some increase in rice prices reflecting the adverse impact of excess rainfall/flooding on domestic production. They also expected bread prices to increase on account of the expected adverse impact of flooding on domestic wheat production," read the report in part.

Equally, cooking oil, onion and tomato prices are expected to remain elevated for the month.

"Prices of onions were expected to remain elevated. The observed price change in May 2024 was not significantly different from what was observed in the April 2024 survey," CBK noted in its report.

"However, some farmers were of the view that the prevailing high prices of onions would incentivise farmers to produce more onions thereby leading to a price decline."

Currently, 1 litre of cooking oil is sold at Ksh330 while medium-sized onions and tomatoes go for Ksh15.

Food Items to Drop in Prices

Conversely, some food items are expected to drop in the coming month and that includes maize flour.

According to the stakeholders, the reduction of maize flour is anticipated because of the adequate supply of maize grains in the market.

Currently, a 2kg packet of maize retails between Ksh120 and Ksh190 depending on the brand.

Traditional vegetables and cabbages have been projected for stable supply during the next month, hence projections for the reduction in prices.

The stable supply has been explained by the recent rains that enabled some farmers to plant the vegetables.

"Respondents expected a decline in prices of some vegetables, milk and sugar. However, expectations for price declines appear to have moderated in the May 2024 survey compared to April,"CBK noted

"Whereas respondents expected the sugar prices to decline, they noted that the magnitude of decline would be much lower in June as sugar prices had already declined from historically high levels and were likely to stabilise."

Source : kenyans