Kenya’s inflation rate dropped to 7.9 percent in June – report
By Mary Ouko, July 1, 2023
The country’s inflation rate dropped from 8 percent in May to 7.9 percent in the month of June, a report shows.
According to the report released by the Kenya National Bureau of Statistics (KNBS), the inflation was caused by a hike in prices of commodities under food and non-alcoholic drinks whose index was at 10.3 per cent.
Similarly, housing, water, electricity and other fuels index was at 9.4 percent whereas transport recorded an index of 9.4 percent.
“The inflation was largely due to increase in prices of commodities under food and non-alcoholic beverages (10.3 percent), as well as housing, water, electricity, gas and other fuels (9.4 percent); and transport (9.4 percent) between June 2022 and June 2023,” KNBS said.
The KNBS data also shows that potatoes, avocadoes, Kale and cabbage index significantly reduced by 6.1 percent, 4.6 percent, 2.7 percent and 0.3 percent respectively whereas the items such as carrots, onions, tomatoes, and maize grain-loose index increased by 9 percent, 7.3 percent, 6.4 percent and 5.5 percent respectively.
Inflation is the percentage difference of the Consumer Price Index (CPI) between two periods whereas CPI is a fundamental macroeconomic indicator used for the purpose of monitoring price movements to inform and track monetary and fiscal policies and labour negotiations.