Kenya’s annual headline inflation rate experienced a slight increase to 8.0% in May 2023, rising from a ten-month low of 7.9% in April 2023. This upward trend in inflation was primarily influenced by higher prices in key sectors such as food and non-alcoholic beverages, housing, water, electricity, gas, and transportation. These sectors collectively contribute to over 57% of the overall consumer price index (CPI) weights.
The prices of commodities under the food and non-alcoholic beverages division increased by 10.2% between May 2022 and May 2023. This surge can be attributed to various factors, including the rising cost of sugar due to lower global supply and reduced domestic production as farmers shift to other crops like corn.
The housing, water, electricity, gas, and other fuels division witnessed a 9.7% increase in prices during the same period. Factors such as rising energy costs and adjustments in housing-related expenses contributed to this upward trend.
The transport sector experienced a significant price rise of 10.1% between May 2022 and May 2023. This increase can be attributed to factors such as higher fuel prices, which impact transportation costs across the country.
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