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Inflation edges up to 5.1pc in May amidst price hikes in key sectors

Business
By David Njaaga | May 31, 2024
Inflation edges up to 5.1 per cent in May as key sectors witness price hikes.[Standard,File]

A new report by the Kenya National Bureau of Statistics (KNBS) reveals that inflation rose to 5.1 per cent in May, up from 5.0 per cent in April.

The increase was primarily driven by a surge in prices of commodities under transport, housing, water, electricity, gas, and other fuels.

The Consumer Price Index (CPI), which measures the annual headline inflation rate, shows the general price level in May 2024 was 5.1 per cent higher than in May 2023.

KNBS attributed the rise in prices mainly to commodities under transport (8.1 per cent), food and non-alcoholic beverages (6.2 per cent), and housing, water, electricity, gas, and other fuels (4.4 per cent) between April and May 2024.

The divisions account for over 57 per cent of the weights of the 13 broad categories.

The CPI and inflation data are generated from a monthly survey of retail prices targeting a representative basket of household consumption goods and services.

Data collection occurs in the second and third weeks of the month from a representative sample of outlets located in 50 data collection zones across the country.

The index increased from 138.40 in April to 139.85 in May, attributing to a monthly inflation of 1.0 per cent.

The food and non-alcoholic beverages index increased by 2.0 per cent in the same period. Spinach, kale ("sukuma-wiki"), tomatoes, and Irish potatoes increased by 18.2, 15.0, 14.0, and 6.2 per cent, respectively.

However, during the same period, the price of sifted maize flour, fortified maize flour, loose maize grain, and white wheat flour decreased by 3.2, 2.3, 1.6, and 1.3 per cent, respectively.

The housing, water, electricity, gas, and other fuels index increased by 1.2 per cent. However, the price of gas/LPG and kerosene dropped by 0.6 per cent and 1.0 per cent.

The transport index increased by 0.2 per cent between April and May, with prices of petrol and diesel dropping by 0.5 per cent and 0.7 per cent respectively.

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