Kenya’s inflation accelerated to a record high in August amid a continued increase in food, fuel, and housing costs, even as economic uncertainties loom on the next head of government.
Monthly, Kenya’s inflation data by the Kenya National Bureau of Statistics (KNBS) shows the country’s overall rate of inflation in August stood at 8.5 per cent compared to 8.3 per cent in July.
The rate of inflation has remained in breach of the government’s target of 2.5 to 7.5 per cent, which is targeted and pursued to maintain stability in prices in the domestic market for the third consecutive month.
“The rise in Kenya’s inflation was mainly due to increase in prices of commodities under food and non-alcoholic beverages (15.3 per cent); transport (7.6 per cent) and housing, water, electricity, gas and other fuels (5.6 per cent) between August 2021 and August 2022,” KNBS said in a statement.
In the latest figures, the Consumer Price Index (CPI), which measures the percentage change in the price of a basket of goods and services consumed by households, increased by 0.4 per cent from an index of 125.05 in July 2022 to 125.58 in August 2022.
Factors Driving Kenya’s Inflation Rate
The month-to-month Food and Non-Alcoholic Beverages Index increased by 0.5 per cent between July 2022 and August 2022.
Relative to July 2022, prices of Maize flour- loose, sugar and mangoes increased by 4.7, 4.6 and 4.1 per cent in August 2022, respectively.
A kilo of loose maize flour retailed at Sh78.4 during the month, while a kilo of sugar retailed at Sh135.18.
During the same period, prices of carrots and onions-leeks dropped by 6.4 per cent and 2.4 per cent, respectively.
The price of a kilo of carrots dropped to Sh98.59 from Sh105.31 in July, while the price of a kilo of onions-leeks dropped to Sh124.1 from Sh127.12.
Alcoholic beverages, tobacco, and narcotics Index increased by 0.7 per cent between July 2022 and August 2022.
“This was mainly due to an increase in prices of beer (lagers and stouts) and wines which increased by 1.2 per cent and 0.8 per cent respectively,” said KNBS on Kenya’s Inflation report.
The Housing, Water, Electricity, Gas and Other Fuels Index increased by 0.3 per cent between July 2022 and August 2022 partly due to an increase in the price of house rent- single room.
Furnishing, household equipment, and routine household maintenance index increased by 0.5 per cent between July 2022 and August 2022.
This was mainly attributed to increase in prices of laundry soap/bar soap and detergents, which rose by 1.5 per cent and 0.7 per cent, respectively.
Read also; Rise in Food Prices Pushes Kenya’s Inflation in July to 8.3%.
