The year-on-year headline inflation as measured by the Consumer Price Index (CPI) was 2.8 per cent in November 2024. This means that the general price level was 2.8 per cent higher in November 2024 than it was in November 2023.
Data from the Kenya National Bureau of Statistics (KNBS) show that the price increase was mainly driven by the rise in prices of commodities under Food and Non[1]Alcoholic Beverages (4.5%); and Housing, Water, Electricity, Gas and other fuels (0.1%) between November 2023 and November 2024.
However, the commodity prices in the Transport sector declined by 1.1 per cent between November 2023 and November 2024. These three divisions account for over 57 per cent of the weights of the 13 broad categories.
The CPI reflects the cost of purchasing a fixed basket of goods and services and indexes the current year’s prices relative to base period values (February 2019).
How are Consumer Price Indices generated?
The CPI and consequent inflation rate are generated from data collected through the monthly survey of retail prices that targets a statistically representative basket of household consumption goods and services.
According to KNBS, the data collection is undertaken in the second and third weeks of the month from a statistically representative sample of outlets in urban centres located in 50 data collection zones spread across the country.
The overall index increased from 140.44 in October 2024 to 140.81 in November 2024, resulting in an inflation of 0.3 per cent over that period.
The Food and Non-Alcoholic Beverages Index increased by 0.6 per cent between October 2024 and November 2024. In particular, prices of sugar, maize flour-sifted and fortified maize flour rose by 5.3, 5.1 and 4.9 per cent, respectively, between October 2024 and November 2024.
Prices of potatoes (Irish), onion (leeks and bulbs) and cabbages decreased by 2.8, 2.7 and 2.6 per cent, respectively, between October 2024 and November 2024.
The Housing, Water, Electricity, Gas and Other Fuels Index dropped by 0.1 per cent between October 2024 and November 2024. The drop is attributable to a decrease in prices of LPG (gas) by 1.1 per cent and the cost of both 50 kWh and 200 kWh of electricity declined by 0.3 per cent.
