Nairobi's low income group bore inflation brunt in Q4

EXPENSIVE: Shoppers at supermarket in Mombasa. Photo/File
EXPENSIVE: Shoppers at supermarket in Mombasa. Photo/File

Nairobi's poorest households faced a higher cost-of-living pressure during the last quarter of 2015, unlike their rich who enjoyed a relatively easier time, Kenya National Bureau of Statistics data indicates.

The data shows the average inflation rate for the lower income group stood at an average of 8.17 per cent between October and December, up from 4.72 per cent recorded over the same period in 2014.

Over the same period, however, inflation for the rich people living in Nairobi dropped from 3.92 per cent to 3.9 per cent, while it rose from 3.43 to 5.6 per cent in the middle class segment.

The rise in the cost-of-living among poor households was mainly pushed by high food prices, which take up the biggest chunk of their earnings.

On the other hand, the drop in inflationary pressure among the upper income group is associated with the fall in transportation costs, after consecutive montly downward review of petrol and diesel prices by the Energy Regulatory Commission.

According to the KNBS, the price of a market basket comprising selected consumer goods increased by an average of 1.15 per cent between October and December 2015.

“This aggregate increase in the food index was a result of rise in prices of several food items,” KNBS said.

KNBS's food basket includes potatoes, beef with bones, avocado, spinach, maize, sukuma wiki, tomatoes, dania and onions.

KNBS defines the poor households in Nairobi as those earningless than Sh23,670 per month.

The middle income group includes households erning between Sh23,671 to Sh119,999 while the upper income group comprise households earning above Sh120,000.

The data shows inflation in the rest of urban areas in the country averaged 7.47 per cent in the fourth quarter of 2015 compared to 4.4 per cent recorded in a similar period in 2014.

These urban areas are Mombasa, Malindi, Machakos, Nyeri, Thika, Nakuru, Kisii, Kisumu, Eldoret, Nyahururu, Garissa and Bungoma.

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