- Kenya’s Nairobi has been ranked position 141 out of 173 cities surveyed globally, from position 108 in 2022.
- According to EIU, this means the general cost of products and services for the 12 months period to September 2023, was less expensive compared to the previous year.
Image: FILE
Kenya has moved 33 positions down in the latest global cost of living ranking by international research unit, Economic Intelligence.
This means the general cost of products and services for the 12 months to September 2023, was less expensive compared the same period in 2022.
The unit's ranking of major cities places Nairobi at position 141 out of 173 cities surveyed globally.
It attributes the ease in the cost of living majorly to the slowdown in inflation, as economies recover from the impact of the Covid-19 pandemic.
Kenya’s inflation for the month of December eased slightly to 6.6 per cent, down from 6.8 per cent in November and the highs of nine per cent early in the year.
The research body generally terms the inflation levels during the review period as modest, but one with an upside risk.
“In 2024 we expect the lagged impact of interest-rate rises to slow down economic activity, and in turn, consumer demand, prompting ease in commodity prices,” the report reads in part.
It however notes that the upside risks remain, as further escalations of the Israel-Hamas war would drive up energy prices, while a greater than expected impact from El Niño would push up food prices even further.
“Regional disparities may also widen, with developed countries coming close to meeting central bank targets of two per cent of the Consumer Price Index (CPI), but many developing markets could continue to see prices soar.”
EIU's update on the ease of the cost of living mirrors World Bank's latest report dubbed 'Kenya Economic Update', which says Kenya’s economic performance strengthened in 2023, with the GDP accelerating to about five per cent from 4.8 per cent in 2022.
It however says the growth was despite the tough macro economic environment experienced during the year.
World Bank attributed the growth to a strong rebound in agriculture sector, which had faced a persistent and severe drought, as well as a moderate growth in the services sector.
From EIU's ranking, Singapore kept its position as the world’s most expensive city in the period under review, maintaining the position for the ninth time in 11 years.
It ranks jointly with Zurich (Switzerland), which is back at the top after three years.
New York (US), which came joint first last year, moved down to third position, tying with Geneva (Switzerland).
“The world’s cheapest city is still Damascus (Syria),” reads the report.
The Worldwide Cost of Living survey compares more than 400 individual prices across more than 200 products and services in 173 cities.
Generally, data collected between August and September last year, shows prices rose by an average of 7.4 per cent in local-currency terms over the past year in the world’s major cities.
“This is slightly slower than the 8.1 per cent price growth recorded in 2022, as supply-chain disruptions have eased and interest rates have risen, but remains significantly above the trend in 2017-21,” reads the report.