Kenya’s August inflation rose to 6.57% compared to the 6.55% Inflation rate in July. A Kenya National Bureau of Statistics (KNBS) report attributes this rise to the increased cost of basic foodstuffs and transport.
The rise in inflation was mainly driven by an increase in prices of commodities under:
- Food and non-alcoholic beverages (10.67%).
- Transport (7.93%).
- Housing, water, electricity, gas and other fuels (5.07%) between August 2020 and August 2021.
The Consumer Price Index (CPI), measuring the percentage change in the price of a basket of goods and services consumed by households, increased by 0.23% from a revised index of 115.446 in July 2021 to 115.710 in August 2021.
The month to month Food and Non-Alcoholic Drinks’ Index increased by 0.46% between July 2021 and August 2021. This was attributed to a price increase of some food items, which outweighed the decrease in prices of others.
Prices of cabbages, spinach and oranges increased by 3.74%, 3.06% and 2.44%, respectively. On the flip side, prices of potatoes and onions (leeks and bulbs) decreased by 0.48% and 0.30%, respectively. The cost of a kilo of potatoes, sukuma wiki, beef and carrots also increase by between 9% and 16%.
The Housing, Water, Electricity, Gas and Other Fuels’ Index increased by 0.32% between July 2021 and August 2021. This was attributed to the prices increase of cooking fuel and house rent despite the slight decrease in the price of electricity.
Transport Index decreased by 0.32% mainly due to decreases in bus fares of country and city public service vehicles. This is due to the return to full capacity for public service vehicles in August 2021.
The monthly cost of education increased by 2.2% in August, contributing an average weight cost of 5% in the overall CPI.
The price of 50 kilowatts of electricity increased by KSh100 last month compared to a similar period last year, whereas a 13-kilogram gas cylinder was refiled at KSh2,394 compared to KSh2,006 in August last year.