Customers browse a neighborhood store
Photo: JACKTONE LAWI
In June, Kenya’s yearly inflation tumbled to a four-year low despite the rising costs of transport, housing, certain food items, and utilities, according to the latest data from the Kenya National Bureau of Statistics.
Consumer prices in June increased by 4.6% year-on-year, down from 5.1% in May, marking the lowest rate since September 2020.
KNBS data revealed that these indexing increments didn’t sway the overall inflation rate, offering some relief to consumers exasperated by the high living expenses.
“The annual inflation rate, as gauged by the Consumer Price Index (CPI), hit 4.6% in June 2024, with a monthly inflation rate at 0.4%. In May 2024, the annual rate was 5.1%,” states the KNBS report.
The annual inflation hike was driven mainly by price increases in commodities classified under the individual consumption by purpose (COICOP) divisions.
The government’s favored inflation bracket ranges from 2.5% to 7.5% for the medium term.
The cost surge was principally propelled by rising prices in the transport sector (up 7.7%), food and non-alcoholic beverages (up 5.6%), and housing, water, electricity, gas, and other fuels (up 3.1%) between June 2023 and June 2024.
These three sectors constitute over 57% of the total weight across 13 broad categories. The inflation rate was at 5.0% in May 2024.
During the review period, a kilogram of sugar dropped by Sh4 to Sh168.6, while sifted maize flour fell by Sh3 to Sh135.
The price of a liter of cooking oil also fell by Sh2 to Sh326, down from May’s average of Sh328.
The average rent for a single-room dwelling in the city edged up slightly to Sh4,102 from Sh4,101 the previous month.
Meanwhile, electricity saw the most significant price hike, with an average increase of Sh44 in June compared to May.
This increase led Kenyans to pay Sh1,321 in June, up from Sh1,277 for 50kWh of electricity.
Specifically, cabbage, spinach, and kale (sukuma-wiki) prices rose by 14.8%, 11.3%, and 10.7%, respectively, from May to June 2024.
Conversely, prices of oranges, sugar, and sifted maize flour decreased by 2.5%, 2.4%, and 2.0%, respectively, over the same period.
The index for housing, water, electricity, gas, and other fuels climbed by 0.4% from May to June 2024, primarily due to a 2.9% rise in prices for 200kWh and a 3.4% increase for 50kWh of electricity.
This was despite a decline in the prices of LPG and kerosene by 0.3% and 3.4%, respectively, during the period.
The transport index slipped by 0.2% between May and June 2024, mainly due to reductions in petrol and diesel prices by 1.6% and 3.4%, respectively.
