COST OF LIVING

June inflation eases to 4.59% on reduced food prices

According to the Kenya National Bureau of Statistics, Consumer Price Index dropped from 108.60 in May to 108.27 in June.

In Summary
  • The Consumer Price Index (CPI) which measures the percentage change in the price of a basket of goods and services, decreased by 0.31 per cent.
  • The prices of tomatoes, Irish potatoes, cabbages, oranges, and wheat flour decreased by 12.16, 5.05,4.84, and 4.00 per cent respectively 
Ngong' allocation market, Kajiado county.
Ngong' allocation market, Kajiado county.
Image: TRIZZA KIMANI

The drop in food prices saw the country's inflation ease to 4.59 per cent in June, lowest this year. 

This was 74 basis points lower compared to last month when inflation hit 5.33 per cent.

The cost of living has been dropping since January despite a tough economy brought about by the ongoing Covid-19 pandemic that saw government announce a countrywide curfew and restrict movement in Nairobi and Mombasa, Mandera, Kilifi and Kwale.

 

The restriction of movement in Kwale and Kilifi has been lifted and the countrywide curfew reviewed from the initial 7pm to 5am to 9pm to 5am. 

 

In the latest figures, the Consumer Price Index (CPI) which measures the percentage change in the price of a basket of goods and services consumed by households, decreased by 0.31 per cent.

According to the Kenya National Bureau of Statistics, CPI dropped from 108.60 in May to 108.27 in June.

This led to a 1.27 per cent decrease in the food and non-alcoholic drink’s index decreased in June, compared to a decrease of 0.24 per cent in May while the year-on-year food inflation increased by 8.15 per cent.

It was a result of observed price decreases outweighing increases in various commodities.

The prices of tomatoes, Irish potatoes, cabbages, oranges and wheat flour decreased by 12.16, 5.05,4.84, and 4.00 per cent respectively in June as compared to May.

Tomatoes retailed an average price of S101.79 per kilo a major drop from Sh115.89 in May.

 

On the other hand, prices of some foodstuffs such as onions, kale (sukuma wiki) and spinach increased by 3.51, 4.67 and 2.61 per cent respectively.

 

During the same period, housing, water, electricity, gas and other fuels’ index, decreased by 0.81 per cent.

“This was mainly attributed to a 21.33 per cent decrease in the cost of kerosene,” KNBS said in its monthly statement.

The transport index increased by 2.08 per cent on account of a 6.81 per cent increase in prices of petrol, which outweighed he 4.76 per cent decrease in the cost of diesel, recorded over the same period.