Inflation rate slows to 4.3pc in July due to rising food, transport and housing costs
Business
By
David Njaaga
| Jul 31, 2024
Kenya's year-on-year inflation rate slowed to 4.3 per cent in July, down from 4.6 per cent in June, according to the Kenya National Bureau of Statistics (KNBS).
The decrease was primarily influenced by rising prices in food, non-alcoholic beverages, transport and housing.
In its monthly report, KNBS noted that the Consumer Price Index (CPI) showed the general price level in July 2024 was 4.3 per cent higher compared to July 2023.
"The inflation rate slowed mainly due to price increases in essential commodities," said KNBS Director General Macdonald Obudho.
The report highlighted that the prices of items under the Food and Non-Alcoholic Beverages category rose by 5.6 per cent, Transport by 4.0 per cent, and Housing, Water, Electricity, Gas and Other Fuels by 3.9 per cent over the past year.
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These categories collectively account for over 57 per cent of the weights of the 13 broad categories used to measure inflation.
Obudho also pointed out a slight decline in the Food and Non-Alcoholic Beverages Index between June and July 2024, with a 0.5 per cent decrease.
Notable price reductions were observed in tomatoes, wheat flour, onions and maize flour, which dropped by 5.5 per cent, 4.2 per cent, 4.1 per cent and 3.3 per cent, respectively.
However, some items saw price increases. For example, cabbages and carrots experienced price hikes of 8.1 per cent and 1.8 per cent, respectively.
The Housing, Water, Electricity, Gas and Other Fuels Index also declined by 0.4 per cent, mainly due to a 9.4 per cent decrease in the price of 200 kWh of electricity.
"The data collected through our monthly survey of retail prices reflects the economic conditions faced by Kenyan households," said Obudho.
"These figures are crucial for understanding the current market trends and guiding policy decisions."
KNBS collects data from a representative sample of outlets located in 50 data collection zones across the country, focusing on a basket of household consumption goods and services.
The survey is conducted in the second and third weeks of each month, providing a comprehensive view of the price movements within the country.