wazua Sun, May 3, 2026
Welcome Guest Search | Active Topics | Log In

4 Pages<1234>
this just in-march inflation hits 9.1%
Options
Previous Topic · Next Topic
newfarer
#11 Posted : Thursday, March 31, 2011 9:07:02 AM
Rank: Elder

Joined: 3/19/2010
Posts: 3,505
Location: Uganda
Just at the time I was feeling the heat on the price of my favourite bread , Broadways, they announced that the rate of inflation is 9.1%.I think the rate is higher than that .The price of bread has been increasing fast from Ksh 30 in December 2010 to Ksh 40 today.And schools are closing , I'm finished!!!!!

The price of bread and maize meal(unga) is now unreachable to many Kenyans.
punda amecheka
Back to top
  |
youcan'tstopusnow
#12 Posted : Thursday, March 31, 2011 9:13:33 AM
Rank: Chief

Joined: 3/24/2010
Posts: 6,779
Location: Black Africa
Watu waache ugali na mahindi waanze kukula nduma na matoke
GOD BLESS YOUR LIFE
Back to top
WWW
  |
KulaRaha
#13 Posted : Thursday, March 31, 2011 9:19:30 AM
Rank: Elder

Joined: 7/26/2007
Posts: 6,514
youcan'tstopusnow wrote:
Watu waache ugali na mahindi waanze kukula nduma na matoke


Soon we will eat rats like advised by our dear leaders
Business opportunities are like buses,there's always another one coming
Back to top
  |
kizee1
#14 Posted : Thursday, March 31, 2011 9:43:35 AM
Rank: Member

Joined: 9/29/2010
Posts: 679
Location: nairobi
expect a proper tightening...cbk have started mopping up liquidity..implied 3mnth yields are at 4pct...life will get hard...kuna vile we might hav a recession
Back to top
  |
msupious financially
#15 Posted : Thursday, March 31, 2011 11:35:41 AM
Rank: New-farer

Joined: 1/17/2011
Posts: 70
newfarer wrote:
Just at the time I was feeling the heat on the price of my favourite bread , Broadways, they announced that the rate of inflation is 9.1%.I think the rate is higher than that .The price of bread has been increasing fast from Ksh 30 in December 2010 to Ksh 40 today.And schools are closing , I'm finished!!!!!Laughing out loudly Laughing out loudly

The price of bread and maize meal(unga) is now unreachable to many Kenyans.


Try ndumas n gwacis or mandazis one to eat one each...its much cheaper
Back to top
  |
hisah
#16 Posted : Thursday, March 31, 2011 11:57:51 AM
Rank: Chief

Joined: 8/4/2010
Posts: 8,977
kizee1 wrote:
expect a proper tightening...cbk have started mopping up liquidity..implied 3mnth yields are at 4pct...life will get hard...kuna vile we might have a recession


CBK mopping up quietly... So soon we will see banks hiking lending rates quietly and for the active ones the fine print "terms and conditions apply" will be used to adjust the "fixed rate"...

And so we will have a record trillion budget this year with liquidity tightening on the cards with an inflating national debt and a bullish 6% GDP estimate... I love this country's policy makers and their steadfast rosy estimates despite reading the cards wrongly...

World Bank should be studying our economic policies... It works! Brick wall

$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
Back to top
  | | Edit by user: Thursday, March 31, 2011 11:59 AM | Reason: Not specified
ProverB
#17 Posted : Thursday, March 31, 2011 12:24:32 PM
Rank: Veteran

Joined: 3/12/2010
Posts: 1,199
Location: Eastlander
mkonomtupu wrote:
@Hisah now update us on this 9% inflation which you indicated would come in Q2 and its effect on equities. Is it just temporary or is this the shocker like 1993-1994. I'm thinking if it keeps up at this pace banks are going to get plenty of defaults soon. I'm a simpleton from mashinani so try also explain


..mhmmm... read from many an investor... Stock market returns have historically trumped inflation... most recent case..Zimbabwe.. high inflation hurts livelihood..but portends market turn around..coming soon.. smile
High energy prices, rising unit labor costs and pressure on supplies of key resources such as steel and cement (thanks to Hurricanes Katrina and Rita) are lining up like some ill-fated stars to guarantee the Fed will continue raising short-term interest rates.

anyway..high inflation..too much cash chasing too few good...meaning cbk to mop up has increased base rate..later translate to banks adjusting lending rates upwards..consumer goods also see price hikes..
some dude i don't know wrote:

"High interest rates and companies raising prices don’t add up to an investment profile most investors enjoy. However, stocks are still a good hedge against inflation because, in theory, a company’s revenue and earnings should grow at the same rate as inflation over the time.


..i believe the dude is smart. smile
..Let your light so shine before men, that they may see your good works, and glorify your Father which is in heaven...Matt5:16
- 1769 Oxford King James Bible 'Authorized Version
Back to top
WWW
  |
mukiha
#18 Posted : Thursday, March 31, 2011 1:27:42 PM
Rank: Elder

Joined: 6/27/2008
Posts: 4,114
[quote=hisah]I can hardly believe the inflation print @9.1%...?!

I posted this on March 1st that I expect inflation to spike to 9% in Q2 and it was an outrageous estimate!? But alas! It arrives in Q1?! Yet again we have some "analysts" saying this is just a blip and 6% GDP is safe. BS is my response to them. Double digit inflation here we come. CBK has to keep on hiking rates; they have no choice. Now will CBK adapt another inflation formula model to cook down double digit rates back to single digit...??? How many of u have done yoy inflation comparison? Mar10-Mar11 inflation spike is almost x3 or 300% up. Very bullish stock this...
But the gov is busy with hague petitions & mpigs busy with 2012 politicking & hague slinging bs Sad
If ocampo & constitution had failed, we would be in the same boat with Egypt...

http://www.wazua.co.ke/f...amp;m=152615#post152615[/quote]
2 things;

1. CBK does not do the inflation calculations. That's the job of the KNBS, formerly CBS

2. The shift from arithmetic to geometric mean was not intended to reduce the result. geometric mean is the better measure of price index (or other index) movement. That's why even the NSE indices are geometric
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
Back to top
  |
Govmusili
#19 Posted : Thursday, March 31, 2011 2:28:15 PM
Rank: New-farer

Joined: 1/13/2010
Posts: 85
Location: Nairobi
Pump prices arent the only factor. Kenya's year-on-year inflation rate accelerated to 9.19 percent from 6.54 percent in February driven by high food and fuel prices. Month-on-month, the consumer price index rose 2.28 percent, with food and non-alcoholic drinks prices rising by 3.92 percent while transport costs increased by 2.36 percent. Housing, transport, water, Electricity, Gas and other fuels index rose by 1.56 percent. Last week, Central Bank raised its base rate by 25 basis points to 6 percent in a move to curb the rising inflation. Since January this year, inflation has been high above the government medium term target of 5 percent and a further increase may push for further intervention by CBK.

Lakini not to worry too much its anticipated the onset of the long rains to ease pressure on food and electricity costs.
Back to top
WWW
  | | Edit by user: Thursday, March 31, 2011 2:32 PM | Reason: Not specified
hisah
#20 Posted : Tuesday, April 05, 2011 6:58:59 AM
Rank: Chief

Joined: 8/4/2010
Posts: 8,977
@mukiha - I agree CBK doesn't calc inflation, but their monetary policies affect it...
As for inflation model changes by KNBS from arith to geo, as long as the term hedonics is part of the formula, it smacks of cooking aka fraud... And this is a global inflation calc practice now.

Sustained high inflation puts pressure on govt papers and making the gov pay dearly for borrowing, which inflates the national debt. At that point the central bankers & policy makers have to find a way of controlling it. Then out of the blues the CPI is tweaked to exclude 'some' items from the inflation formula basket... China has done this in 2011 and so many other countries. Why? Read the plenty articles on the net...
Inflation has been, is, and will always be a hidden tax and I can't be convinced otherwise...

At least KNBS admits double digit inflation is real in the article below. So why buy short term gov papers...? And bank will keep lending rates low, we will see...

@Pkoli - Stocks thrive in inflation times, but NSE index is already negative for the year long before 'bad guy' oil spiked. Will the NSE index catch up with spiky oil, not likely unless oil does a nosedive, MENA crisis cools off and drought reality is reset. I wonder how...

http://www.businessdaily...8/-/cki610z/-/index.html
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
Back to top
  |
4 Pages<1234>
Forum Jump  
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.

Wazua Investor Theme
Powered by YAF | YAF © 2003-2009, Yet Another Forum.NET
Copyright © 2026 Wazua.co.ke. All Rights Reserved.