Year-on-Year inflation increases by 4.5 per cent in August driven by rise in food and transport costs

Inflation increased by 4.5 per cent in August year-on-year primarily driven by a rise in prices of items in the Food and Non-Alcoholic Beverages (8.3 per cent); Transport (4.4 per cent), and Housing, Water, Electricity, Gas and other fuels (0.8 per cent) over the period.

According to data by the Kenya National Bureau of Statistics (KNBS), these three divisions together account for over 57 per cent of the total weight across the 13 major expenditure categories.

The overall index increased from 145.74 in July  to 146.21 in August, resulting in a monthly inflation rate of 0.3 per cent.

Prices within the food and non-alcoholic beverages division recorded mixed movements. Price drops were observed for items such as fresh unpacketed cow milk (-0.9 per cent), fortified maize flour (-1.7 per cent), sifted maize flour (-1.5 per cent), beans (-0.7 per cent), loose maize grain (- 0.4 per cent), and oranges (-0.7 per cent).

On the other hand, notable increases were recorded for vegetables, with cabbages prices registering the
highest rise at 6.3 per cent, followed by prices of carrots (2.4 per cent), prices sukuma wiki (1.9 per cent), and prices tomatoes (1.2 per cent ). Prices of wheat flour (white) and prices of onions bulb and leeks rose by 0.9 per cent each, while prices of potatoes increased by 0.7 per cent.

Prices in the transport division showed mixed developments. Petrol prices decreased by 0.5 per cent, while diesel prices remained unchanged during the month. On the other hand, passenger transport costs rose significantly, with the country bus/matatu fare for the Mombasa to Nairobi route recording a sharp increase of 15.4 per cent. Similarly, local transport costs went up, as tuk tuk fares rose by 1.5 per cent.

Prices in the housing, water, electricity, gas, and other fuels division showed varied movements. Electricity charges decreased, with 50kWh band prices dropping by 2.3 per cent and 200kWh band price declined by 2.1 per cent. Similarly, kerosene/paraffin prices fell by 0.6 per cent. On the other hand, single-room house rent increased by 0.1 per cent and gas/LPG prices increased by 0.4 per cent.

As a result, the cost of 50kWh dropped from Sh1,288.82 in July to Sh1,259.65. Similarly, the cost of 200kWh fell from Sh5,656.22 in July to Sh5,539.54 in August . Between July and August, petrol prices declined slightly from Sh187.37 to Sh186.37 per litre. In contrast, passenger transport costs rose sharply, with the country bus/matatu fare for the Mombasa to Nairobi route increasing from Sh1,300.00 to Sh1,500.00.

Prices in the alcoholic beverages, tobacco, and narcotics division recorded mixed changes. The price of beer (lagers and stouts) declined by 0.1 per cent, while spirits prices registered a modest increase of 0.5 per cent. Miraa (khat) recorded the highest price rise within the category, increasing by 1.6 per cent.

Prices in the clothing and footwear division showed both declines and increases with the cost of men’s leather shoes and men’s shirts dropping by 0.3 per cent and 0.1 per cent, respectively. In contrast, upward movements were noted for other clothing items, with kangas/kikois prices rising by 1.1 per cent, girls’ school uniforms prices by 0.4 per cent, and men’s suits prices by 0.6 per cent.

The Furnishings, Household Equipment and Routine Household Maintenance Index recorded a slight overall decrease of 0.2%. Declines were observed in detergents prices (-1.4 per cent), mattresses prices (-0.3 per cent), and laundry/bar soap prices (-0.1 per cent). Conversely, the cost of domestic servants rose by 0.2 per cent.

Prices in the health division recorded slight but varied changes. The cost of medicines for cholesterol and blood pressure as well as fever and painkillers such as paracetamol declined by 0.2 per cent. In contrast, increases were noted in the cost of medicines for diabetes (0.6 per cent), laboratory tests (0.4 per cent), and general practitioner’s services (0.1 per cent).

The prices of mobile handsets fell by 0.2 per cent, while television prices also dropped by 0.1 per cent. On the other hand, prices TV subscription fees for private services such as DSTV rose by 1.5 per cent.

Prices of school textbooks for tertiary institutions declined by 0.3 per cent and exercise books prices dropped slightly by 0.1 per cent. In contrast, upward price changes were noted for school textbooks at the secondary level (0.1%) and tour/honeymoon packages (0.1 per cent).

Diploma fees declined slightly by 0.2 per cent, while private secondary school tuition prices rose by 0.8 per cent.

Prices in the restaurants and accommodation services division registered slight increases across all categories.
Prepared food from cafés and take-aways prices rose by 0.3 per cent, beverages in hotels and restaurants prices increased by 0.3 per cent and lodging and guest prices recorded a smaller rise of 0.2 per cent.

The cost of motor vehicle insurance rose slightly by 0.2 per cent.

The Personal Care, Social Protection and Miscellaneous Goods and Services Index rose by 0.2 per cent, largely driven by notable price increases in essential personal care items. Prices of body lotion, toilet soap and toilet/tissue paper rose by 0.2 per cent, 0.4 per cent and 1.6  per cent, respectively.