The year-on-year inflation rate, as measured by the Consumer Price Index (CPI), was 4.4 per cent in August 2024. This means the general price level was 4.4 per cent higher in August 2024 than in August 2023.
The price increase was mainly driven by the rise in prices of commodities under Food and Non-Alcoholic Beverages (5.3%); Housing, Water, Electricity, Gas and other fuels (4.2%) and Transport (3.9%) between August 2023 and August 2024. These three divisions account for over 57 per cent of the weights of the 13 broad categories.
The Alcoholic Beverages, Tobacco, and Narcotics year-on-year index rose by 8.2 per cent.
According to the Kenya National Bureau of Statistics, the CPI and inflation are generated from data collected through the monthly retail price survey targeting a representative basket of household consumption goods and services.
“The data collection is conducted in the second and third weeks of the month from a representative sample of outlets located in 50 data collection zones across the country,” notes KNBS.
The overall index decreased from 139.94 in July 2024 to 139.87 in August 2024, resulting in a slight decrease in monthly inflation.
Further, the Food and Non-Alcoholic Beverages Index decreased by 0.7 per cent between July 2024 and August 2024. In particular, prices of tomatoes, spinach, onion leeks and bulbs and kale-sukuma wiki decreased by 12.0, 6.7, 5.6 and 4.6 per cent, respectively, between July 2024 and August 2024.
Which items had a price increase in August 2024?
During the same period, prices of potatoes (Irish), oranges and mangoes increased by 7.1, 3.2 and 2.6 per cent, respectively between July 2024 and August 2024. The Housing, Water, Electricity, Gas and Other Fuels Index increased by 0.3 per cent between July 2024 and August 2024 attributable to a rise in prices of 200 kWh of electricity and 50 kWh of electricity by 1.6 per cent and 1.8 per cent, respectively.
Moreover, the Transport Index increased by 0.3 per cent between July 2024 and August 2024 mainly due to an increase in the prices of country bus fares. During the same period, prices of petrol and diesel remained unchanged.
The Alcoholic Beverages, Tobacco and Narcotics Index also rose by 1.9 per cent between July 2024 and August 2024. This was mainly driven by an increase in prices of cigarettes by 14.5 per cent between July 2024 and August 2024.
