KENYA'S ANNUAL INFLATION CLIMBS TO 13.6%

Kenya’s annual inflation rose to 13.6 per cent in July from 11.1 per cent in June due to an increase in food and energy prices, the Kenya National Bureau of Statistics said on Thursday.

Underlying inflation, which excludes food prices, increased to 5.6 per cent from 5.2 per cent in June. “Food and non-alcoholic drink index rose ... mainly due to an increase in prices of kale, cabbages, sugar and ... bread,” the Bureau said in a statement.

The alcohol and tobacco index increased by 1.8 per cent in July compared with June while fuel and power rose by 1.2 per cent, the Bureau added.

The bureau collects data every second and third week of the month from shops in 13 towns in the country. It is seen as representing the spending behaviour of urban Kenyan households.

US stocks dropped on Friday, with the S&P 500 losing more than one per cent, after Standard & Poor’s cut Bear Stearns Cos. Inc.’s rating outlook, dragging down shares of the investment bank and other financial-sector stocks.

The Dow Jones industrial average was down 118.52 points, or 0.88 per cent, at 13,344.81. The Standard & Poor’s 500 Index was down 14.72 points, or 1.00 per cent, at 1,457.48. The Nasdaq Composite Index was down 21.67 points, or 0.84 per cent.

Oil fell near $76 a barrel on Friday as traders booked profits, closing out a week where supply concerns helped push prices to a record high.

US oil tumbled 79 cents to $76.07. Prices hit a record $78.77 on Wednesday, but fell sharply on signs of improved US refinery operations. London Brent slipped 79 cents to $74.97.

“It’s Friday and people are taking a little profit from the recent highs,” said Phil Flynn, analyst at Alaron Trading in Chicago. Losses were limited as OPEC remained reluctant to increase its production, despite calls from the United States to turn up its taps.

Top consumer the United States is worried that as refiners crank up, crude stocks will drain rapidly and tighten supplies.

US Energy Secretary Sam Bodman on Thursday warned that oil prices have placed the world’s largest economy in a “danger zone.” He urged OPEC to raise output when it meets in September.

“People are concerned about overall crude and product stocks globally, as demand’s still strong,” said Gerard Rigby of Fuel First Consulting in Sydney.



SOURCE: DAILY NATION