KNBS reported a 5pc annual inflation rate for April 2024
By Noel.Wandera, May 2, 2024
The Kenya Bureau of Statistics (KNBS) reported a 5 per cent annual inflation rate for April, marking a decrease from the 5.7 percent rate recorded in April 2023.
This signifies that, on average, the prices of goods and services in Kenya increased by 5 percent compared to the same period last year. Notably, this rate represents a slight slowdown in the rate of price increases compared to the previous year.
In addition, the monthly inflation rate experienced a slight deflation of 0.2 percent. Deflation occurs when the general level of prices for goods and services in an economy decreases over a period of time, indicating a slight decline in prices compared to the previous month, despite ongoing rains.
The inflationary dynamics were influenced by price fluctuations in key sectors, including Transport, Food and Non-Alcoholic Beverages, and Housing, Water, Electricity, Gas, and Other Fuels.
Housing, water and gas sectors Transport prices increased significantly by 9.2 per cent, while prices for Food and Non-Alcoholic Beverages rose by 5.6 per cent. Similarly, the Housing, Water, Electricity, Gas, and Other Fuels sector contributed to inflation with a 3.8 per cent increase in prices.
These sectors collectively account for over half of the Consumer Price Index (CPI), an essential indicator used to track overall price changes in the economy and assess macroeconomic trends.
Despite the overall inflationary trend, the Food and Non-Alcoholic Beverages sector, which holds the largest weight in the CPI, recorded a marginal decrease of 0.1 percent between March and April 2024.
During the review period, specific commodities experienced notable price changes. The cost of a kilogramme of onions saw the highest increase of 0.3 per cent, while a kilogramme of sugar experienced the most significant drop, falling by 8.3 per cent.
In the non-food category, a 13 kg cooking gas cylinder saw the highest price increase of 0.3 per cent, while the cost of a liter of Kerosene dropped the most, decreasing by 9.7 percent.
Other notable changes included a decrease in the prices of sugar, maize grain-loose, fortified maize flour, and maize loose, and an increase in the prices of onion-leeks and bulbs, tomatoes, and oranges.