PRODUCER PRICES of various goods and services in Kenya increased by 1.31 percent in the first quarter of this year, Kenya National Bureau of Statistics (KNBS) said last week. The report indicates that in the first quarter of this financial year the overall producer prices increased by 1.31 percent while the Producer Price Indices (PPI) increased from 106.03 to 107.42. The year-on-year PPI inflation from March 2012 to March this year increased by 2.6 percent, meaning that consumers in Kenya are paying more for goods and services on account of rise in producer prices. "The price changes are measured from the perspective of the seller. The PPIs are used as an aspect of output for the seller and as a cost factor for the buyer,” said KNBS. Kenya’s electricity index increased from 99 to 101 due to rise in oil prices, according to the review, whereas the mining sector index increased the most by five points during the same period. Mining and quarrying index increased from 103.9 in December 2012 to 108.1 in March this year due to rise in the prices of ballast, which is mainly used in construction industry.The real estate sector in the East African nation is one of the most lucrative industries and it is estimated to be worth over US$3.5 billion. The mining index was followed by water’s, which increased by four points during the period under review. Producer prices indices of goods and services that remained unchanged during the period included printing and reproduction of recorded media, repair and installation of machinery and equipment and manufacture of furniture.