Kenya’s annual inflation rate slowed to 4.3 per cent in July 2024 from 4.6 per cent in July last year, according to the latest figures released by the Kenya National Bureau of Statistics (KNBS). On a monthly basis, inflation fell by 0.2 per cent, contrasting with a 0.4 per cent increase last month, maintaining the Central Bank’s target of between 2.5 per cent and 7.5 per cent in the medium term.
Overall year-on-year (annual) inflation rate as measured by the Consumer Price Index (CPI) was 4.3 per cent, in July 2024. This means that the price of a basket of goods purchased by households in July 2024 cost 4.6 per cent more that it cost in July 2023.
Transport index
“The month of July 2024 recorded a monthly inflation rate of negative 0.2 per cent,” the government statistician said in its monthly bulletin.Transport index increased by 4 per cent in the last 12 months, while housing, water, electricity, gas and other fuels index increased by 3.9 per cent, according to the new data. On the other hand, the Food and Non-Alcoholic Beverages Index increased by 5.6 per cent within the period in review. Between June and July, the Consumer Price Index (CPI), which is a measure of the weighted aggregate change in retail prices paid by consumers for a given basket of goods and services saw varied changes for basic items in the food and non-food index, impacting consumers differently.
The food category witnessed the price of a kg of cabbage surge by 8.1 per cent, posing a significant burden on households that rely on it as a staple vegetable. Conversely, the price of a kg of onions dropped by 5.5 per cent, offering some financial relief to consumers who frequently use them in their cooking.
A litre of cooking oil minimally increased by 0.7 per cent, which is unlikely to affect household budgets significantly, while a kg of sugar decrease by 2.5 providing minor savings. In the non-food category, the price of cooking gas rose by a modest 0.2 per cent, similar to the monthly rent for a one-bedroom house also increased by 0.2 per cent.
