Looming higher inflation as maize flour price jumps 12%

Looming higher inflation as maize flour price jumps 12%

Kenya risks higher inflation of flour prices following the significant increase in maize prices, a move that is threatening the country’s economy, putting millions of households in a  dire state amidst the COVID-19 pandemic.

The cost of a two kilograms packet of maize flour is now retailing at Ksh.134, a rise that has been linked with the increase in maize prices.

Other brands like Dola, Pembe, Ajab, Jogoo, and Soko prices are at Ksh.133, Ksh.124, Ksh.127, Ksh.122 and Ksh.123 respectively per two-kilogram packet as compared to 2018 where the prices were at Ksh 108.

“The pressure for maize is going up “said Capwell Industries chief executive Rajan Shan as reported by Business Daily.

Millers also indicated Limited maize stocks in the market as another major reason for the rise in flour prices.

This is against the farmer’s move to hold their produce awaiting increase in prices, prior to the millers prophecy that the price would rise to Ksh.130.

In early December last year, the National Cereals and Produce Board (NCPB) was forced to increase the price of maize by Ksh.300 in a bid to soothe farmers.

A 90 KG bag of maize is now retailing between Ksh.3,250 and Ksh.2,300.

Kenya’s inflation fell to 5.3 percent in January from 5.8 percent in December according to the Kenya National Bureau of statistics (KNBS).

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