The Global Price Watch report has projected an increase in prices for fuel and basic food items owing to global demand and supply dynamics.
In the report by the Famine Early Warning Systems Network, it was noted that international oil prices would increase owing to the current supply market.
Consequently, with the increase in international prices, fuel prices in the local market could increase. This is because Kenya purely relies on the international market for fuel products.
"Global crude prices are expected to increase in the second quarter of 2024 due to falling global inventories," the report highlighted.
The expected rise comes shortly after a drop was recorded last month. In March, Super Petrol prices were reduced by Ksh7.21. Diesel and Kerosene were reduced by Ksh5.09 and Ksh4.49 respectively.
On the other hand, the report also projects an increase in prices of meat products owing to the expected demand that will commence in April until July.
"Due to the increased demand for religious activities between April and June, locally and for export purposes, livestock prices are projected to remain high in most countries in East Africa," read the report in part.
Notably, most Christians across the world have resumed the consumption of meat owing to the conclusion of the Lent period. Muslims are also scheduled to celebrate Eid al-Fitr in the second week of April.
In March alone, the price of a kilogram of beef with bones increased by 0.6 per cent. This was documented in the monthly consumer price index that was released by the Kenya National Bureau of Statistics (KNBS).
Regarding rice, the report attributed the expected increase in prices to the increased demand and low supply in the market.
"Global rice prices are expected to increase due to concerns over El Niño and potential export restrictions by key rice-exporting and importing nations, influenced by India's export ban," the report detailed.
Currently, 1kg of rice retails between Ksh250 to Ksh300 depending on the brand and type.
"Moreover, if the Red Sea insecurity persists further increases to already high freight costs may compound inflation challenges in most countries in the region," read the statement in part.
Conversely, stable prices have been projected for maize flour owing to the demand.
"Maize prices also decreased across most markets in Kenya due to above average harvest and minimal imports. The price stability is due to sufficient supplies from the recent harvest and reduced demand in coastal regions," read the report in part.
