14.49 up from 12.95...thoughts? how much shud mpc hike cbr by given this developments?

@kizee1. These inflation figures are really getting out of hand, and there are enough analysts projection a figure of 20% before the year is out. CBR should be jacked up by 100 basis points to provide some shock therapy.

If the USD:Ksh rate can be restricted to the 90 shilling level and Brent Crude remains below USD 110 then perhaps we can avoid the rate going beyond 15% and then gradually subside to the 10% range towards the year-end. Am I being overly optimistic?

Treasury should also try and fund a large chunk of its deficit through overseas borrowing. This would restrict the rise in the rate of G.o.K paper while also bringing in some forex into the economy. I am no economist though, and with the Greek problems, I wonder whether international investors would go for it at rates that would not be usurious. What d'ya think?

That has been my take too. The current inflation is not demand oriented. It is supply oriented due to shortages of Oil, USD reserves in Kenya, Maize, housing, water, rainfall, you name it and therefore increasing borrowing costs is not solving anything. I am getting tired of the MPC now, they appear too intellectual and not pragmatic enough.

Agreed, its about time. Any official communication / link?

What about the expected increase in power tariffs between 18-25%? If this is allowed by ERC, inflation will worsen further. I wish there was evidence on concerted, co-ordinated effort at addressing all these factors driving inflation. I see half hearted, half measured initiatives at best from government agencies.