Kenya’s Annual Inflation Rises to 4.4% in August
Kenya's inflation rate went up slightly to 4.4% in August from 4.3% in July. This increase was due to higher prices for food, energy, and transport.
However, the monthly inflation rate, which looks at price changes from month to month, actually went down a bit. The Consumer Price Index (CPI) decreased to 139.87 in August from 139.94 in July.
Between August 2023 and August 2024:
- Food and non-alcoholic drink prices went up by 5.3%.
- Prices for non-food items and services not related to fuel increased by 3.5%.
- Fuel prices rose by 4.7%.
Transport costs saw a small increase of 0.3% from July to August, mostly due to higher bus fares, even though petrol and diesel prices stayed the same.
According to the Kenya National Bureau of Statistics, three major expense categories that make up over 57% of the index all saw price increases.
However, from July to August, the Food and Non-Alcoholic Beverages Index fell by 0.7% because prices for some vegetables like tomatoes, spinach, and onions dropped. But this was partly offset by higher prices for Irish potatoes, oranges, and mangoes.
The Housing, Water, Electricity, Gas, and Other Fuels Index rose by 0.3% due to higher electricity prices.
Cigarette prices jumped by 14.5% between July and August, which caused a 1.9% increase in the index for Alcoholic Beverages, Tobacco, and Narcotics.
Despite these changes, the annual inflation rate is still within the target range of 2.5% to 7.5% and is on the lower end. In August, the Central Bank of Kenya lowered its benchmark interest rate to 12.75% because inflation is easing and the Kenyan shilling is strong and stable, leading to positive economic outlooks.
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