Kenya’s inflation rate increased for the first time in six months to 4.4 percent in August compared to 4.3 percent in July on increased prices of food, energy and transport.
On the upside, monthly inflation saw a slight decrease as indicated by the Consumer Price Index (CPI) which edged lower to 139.87 in August from 139.94 in July.In the period between August 2023 and August 2024, Food and Non-alcoholic beverages prices increased 5.3 percent, Non-Food Non-Fuel prices 3.5 percent and Fuel 4.7 percent.The increase in prices of country bus fare prompted the slight 0.3 percent increase in the Transport Index between July 2024 and August 2024 with petrol and diesel prices stagnating.According to the Kenya National Bureau of Statistics, three divisions which account for over 57 per cent of the weights of the 13 broad categories all saw increases.
However, between July 2024 and August 2024, the Food and Non-Alcoholic Beverages Index decreased by 0.7 per cent driven by decreases in prices of tomatoes, spinach, onion-leeks and bulbs and kale-sukuma wiki. The decrease was however counterbalanced by the price increases of Irish potatoes, oranges and mangoes.
The Housing, Water, Electricity, Gas and Other Fuels’ Index increased by 0.3 per cent between July 2024 and August 2024 attributable to rise in prices of 200 kWh of electricity and 50 kWh of electricity by 1.6 per cent and 1.8 per cent, respectively.
Cigarette prices went up by 14.5 percent between July and August translating to a 1.9 percent increase in the Alcoholic Beverages, Tobacco and Narcotics Index.
The annual inflation rate still falls within the 2.5 and 7.5 target range and currently on the lower belt. In August, the CBK’s Monetary Policy Committee revised the benchmark rate downwards to 12.75 percent citing easing inflation and a stronger stable shilling with overall positive projections.
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