Kenya’s inflation rate drops to 7.9 percent despite rise in food, transport prices
The year-on-year inflation rate in Kenya stands at 7.9 percent as of June 2023.
Commodity prices raised at a slower pace in June as compared to May, recording a 7.9 per cent inflation during the month ending today, June 30.
The inflation rate is slightly slower than the 8 per cent recorded in May, but same as the 7.9 per cent recorded in April.
But Kenya National Bureau of Statistics (KNBS) June Consumer Price Index (CPI) shows that among goods that kept inflation high in the country this month are sugar with a year-on-year inflation rate of 58.1 per cent, 200kwh of electricity (53.4 per cent) and maize grain (30.7 per cent).
A kilo of sugar cost Sh204.76 on average in June 2023, up from Sh129.55 in June 2022. The price also raised by more than Sh10 in June as compared to the previous month when it retailed at Sh194.29 on average.
“The inflation was largely due to increase in prices of commodities under Food and Non-alcoholic beverages (10.3 per cent), and Housing, Water, Electricity, Gas and other fuels (9.4 per cent) between June 2022 and June 2023,” KNBS stated.
Among food commodities, others that have seen prices remain high in June were maize flour (14.5 per cent), potatoes (19.5 per cent), cabbages (17.1 per cent) and carrots (30.2 per cent).
A kilo of Irish potatoes retailed at Sh101.41 in June, up from Sh84.45 during a similar month last year and a 2kg packet of maize flour retailed at Sh202.98 on average from Sh177.34 in June last year. The maize flour price increased by Sh10 from an average of Sh192.46 in May 2023.
Prices of Sukuma Wiki and tomatoes, however, recorded a drop in June 2023 as compared to June 2022, falling by 2.3 per cent and 0.5 per cent respectively.
Among non-food commodities, fuel products dominated the list that saw prices rise the highest during the month, led by kerosene whose price was 25.9 per cent higher in June 2023 as compared to June 2022. The price of Diesel raised by 19.2 per cent and petrol by 14.2 per cent.
The KNBS data shows that Kenyan households and businesses have been most hit by the fuel, electricity, cooking gas and rent prices in June, among the non-food items they consume on a day-to-day basis.
For instance, 200kwh of electricity which cost Sh4,373.12 in June last year, shot up to Sh6,707.02 in June this year, a 53.4 per cent increase. The price of a litre of kerosene also increased from Sh128.86 to Sh162.19.
Liquefied Petroleum Gas (LPG) prices, on the other hand, were 4.6 per cent higher in June as compared to a similar month last year, while rent was 1.9 per cent higher (one-bedroom house).
Looking at how commodity prices raised in June over the previous month, food products dominated the list of those whose prices raised by high margins over the one-month period.
Carrot prices raised by 9 per cent in June alone, onions by 7.3 per cent, tomatoes by 6.4 per cent, maize and maize flour by 5.5 per cent, and sugar price by 5.4 per cent.
Food products whose prices fell in June as compared to May were potatoes (6.1 per cent), avocados (4.6 per cent) and Sukuma wiki (2.7 per cent).
Among non-food items, electricity prices (200kwh) raised by 4.2 per cent in June alone, kerosene by 0.2 per cent and rent by 0.1 per cent.
“Whereas prices of diesel and petrol decreased by 0.7 per cent and 0.4 per cent, respectively, between May 2023 and June 2023, the transport index went up slightly by 0.2 per cent. This was mainly due to increase in prices of fares for city buses and flights during that period,” KNBS stated.
LPG fell by 1.8 per cent, Diesel by 0.7 per cent and petrol by 0.4 per cent.
