Recent data from the Kenya National Bureau of Statistics (KNBS) reveals that the overall year on year (YoY) inflation in May stood at 5.47%. On the other hand, the consumer price index (CPI) increased by 0.63% from 107.92 in April 2020 to 108.60 in May 2020.
The inflation and CPI numbers are based on the new CPI whose base period is February 2019.
The central bank of Kenya (CBK) attributes the marginal decline in inflation, from 5.6% recorded in April, to low fuel process witnesses in May. In addition, CBK says that VAT reductions in April coupled with muted demand pressures in the economy kept the inflation within the target range.
The food and non-alcoholic drinks index increased by 0.86% between April and May 2020. However, YoY food inflation stood at 10% mainly driven by an increase in the price of onions (leeks and bulbs), carrots, oranges, spinach, and sukumawiki, which rose by 4.51, 3.32, 2.57 2.24 and 1.96 percent, respectively.
During the same period, housing, water, electricity, gas, and other fuels’ index increased by 0.84% due to the 3.17% increase in the cost of kerosene.
The Transport Index increased by 0.02%, despite the decrease in prices of petrol and diesel by 9.81% and 19.12%, respectively, over the same period.