Kenyans saw a slight uptick in inflation, reaching 4.4 per cent year-on-year, a marginal rise from 4.3 per cent recorded in July.

The increase, as measured by the Consumer Price Index (CPI), signifies that the general price level was 4.4 per cent higher in August 2024 compared to the same month the previous year.

The new data from Kenya National Bureau of Statistics (KNBS) highlighted several factors contributing to this inflationary trend.

Notably, the cost of transportation rose significantly, with the transport index climbing by 3.9 per cent over the past year up to August 2024.

Additionally, housing, water, electricity, gas, and other fuels saw a 4.2 per cent increase in the same period.

These categories, along with food and non-alcoholic beverages, which increased by 5.3 per cent, were identified as the main drivers of inflationary pressures.

According to KNBS, the CPI basket, which reflects the cost of a representative set of household consumption goods, saw significant contributions from the three main categories: food and non-alcoholic beverages, housing, and transport.

CPI basket

Collectively, these categories accounted for over 57 per cent of the total weight in the CPI basket.

Despite this year-on-year rise, the month-on-month inflation rate remained relatively stable, with little change observed from July to August 2024.

This flat month-on-month inflation suggests that prices did not experience significant fluctuations during this period.

The CPI data is derived from monthly surveys of retail prices, targeting a representative selection of goods consumed by households.

Data collection is done in the second and third weeks of the month from a representative sample of outlets located in 50 data collection zones across the country.

Within the Food and Non-Alcoholic Beverages Index, a 0.7 per cent decrease was noted between July and August 2024.

Specific items saw varied price movements: tomatoes, spinach, onions, and kale experienced price drops of 12 per cent, 6.7 per cent, 5.6 per cent, and 4.6 per cent, respectively.

Conversely, the prices of potatoes, oranges, and mangoes increased by 7.1 per cent, 3.2 per cent, and 2.6 per cent, respectively.

Higher bus fares

The Housing, Water, Electricity, Gas, and Other Fuels Index rose by 0.3 per cent, driven by a 1.6 per cent increase in the price of 200 kWh of electricity and a 1.8 per cent increase in the price of 50 kWh of electricity.

The Transport Index also saw a 0.3 per cent rise, primarily due to higher country bus fares, though petrol and diesel prices remained unchanged.

Additionally, the Alcoholic Beverages, Tobacco, and Narcotics Index saw a 1.9 per cent increase, largely attributed to a 14.5 per cent rise in cigarette prices.