Food inflation remains stubborn

Annual inflation dropped to a 35-month low in July at 1.5 percent, from 4.6 percent in June, due mainly to the base effects of higher fuel prices in July last year and the June 20 reduction of pump prices this year.

However, annual food inflation was measured at 10.7% in July, down from 12.9% in June, indicating that prices remain elevated and their decline is far slower than other items measured by the Consumer Price Index.

As at July, within the food and non-alcoholic basket, vegetable prices were up 15.8% year on year, while bread and cereals were up 15.7%. Cereals include maize, rice, sorghum, and others.

Fish, milk and meat prices are also amongst those that have risen strongly in the past 12 months, while those whose inflation is decelerating include oils and fats, fruits and sugars.

Earlier this year, government zero rated several items such as salt, vegetables, cooking oil, infant formula and others, in an effort to provide “targeted support and sustain livelihoods”.