The Producer Price Index (PPI), which measures the cost of manufacturing, reached 16.53 percent in June before falling to 15. 78 percent in September, according to data from the Kenya National Bureau of Statistics (KNBS). This was the highest level since 2019 September, when the inflation rate was 1.40 percent.
As a result, prices for consumer goods like maize flour, wheat, and edible cooking oil increased to previously unheard-of heights.
The Russian-Ukrainian war, which drove up the cost of raw materials and caused a sharp increase in freight costs, was blamed for the sharp rise in production costs in the second quarter of 2022.
A significant trade route, the Black Sea, saw the opening of its seaports in August after the United Nations and Russia reached a deal, leading to an easing of freight charges and the cost of raw materials, especially grains such as wheat.
The Kenya Association of Manufacturers (KAM) says the minimum wage introduced in May and high logistics costs have also had an impact on the cost of production locally.