Production costs are one of the biggest determinants of the prices that manufacturers set for their products.
The year-on-year drop in the cost of raw materials comes at a time when inflation has dropped to a 12-year low.
The national Producer Price Index (PPI), which measures the average change in prices that domestic producers receive for their output, dipped to 135.24 points last month compared to 140.35 a year ago — handing relief to factories and turning the spotlight on retail prices of goods.
“Over the year ending September 2024, the industrial sectors namely mining and quarrying; manufacturing; electricity, gas, steam, and air conditioning supply recorded reduction in production prices,” the Kenya National Bureau of Statistics says.
