Kenya’s inflation rose in May after a consistent downward trend since January, driven mainly by increases in transport, food, and housing.
According to Kenya National Bureau of Statistics (KNBS) monthly data, the cost of living was up in May marginally to 5.1 per cent from 5.0 per cent in April.Inflation had come down from 5.7, 6.3 and 6.9 per cent levels witnessed in March, February and January respectively.Looking ahead, the above normal rainfall is likely to affect agricultural production, which may drive inflation numbers further up.The price increase in May was mainly driven by rise in prices of 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 May 2023 and May 2024. The three divisions account for over 57 per cent of the weights of the 13 broad categories.
During the period under review, the Food and Non-Alcoholic Beverages Index increased by 2.0 per cent between April 2024 and May 2024. The prices of spinach, Kale “sukumawiki”, tomatoes and potatoes (irish) increased by 18.2, 15.0, 14.0 and 6.2 per cent, respectively between April 2024 and May 2024.
However, the price of maize flour- sifted, fortified maize flour, maize grain-loose and wheat flour- white 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 between April 2024 and May 2024 mainly due to rise in prices of of 200 kWh and 50 kWh of electricity by 6.9 per cent and 5.5 per cent, respectively.
The price of gas/LPG and kerosene dropped by 0.6 per cent and 1.0 per cent, respectively, during the period.The Transport Index increased by 0.2 per cent between April 2024 and May 2024.However, prices of petrol and diesel dropped by 0.5 per cent and 0.7 per cent, respectively during the same period.According to the KNBS data, the average rent for a single has gone up from Sh4,089 in April to Sh4,101 per month. In May last year, rent for a similar unit averaged at Ksh3, 948 per month.
Other items whose prices rose last month includes bean (1kg Ksh187 from Ksh183 in April), Rice (2kg retailing at Ksh469 in May from Ksh 465 in April), Spinach (1 kg retailing at Ksh88 from Ksh74 in April), Onion (Ksh 182 from Ksh177 in April).
The Central Bank of Kenya (CBK) is set to hold its Monetary Policy Committee Meeting on 5th June.
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