Relief for Kenyans As Food Prices Reduced
The Kenya National Bureau of Statistics (KNBS) has provided some relief for Kenyan households by announcing a drop in the prices of essential commodities. As inflation decreased from 4.4% to 3.6% year-on-year in September, basic items such as maize flour, sugar, milk, and wheat flour experienced significant price reductions, offering much-needed respite to consumers.
According to the latest data from KNBS, sugar recorded the most notable decrease, dropping by a staggering 29.9% year-on-year. Maize grain prices fell by 19.8%, while wheat flour witnessed a 10.9% decrease. Fresh packeted cow milk (500ml) dropped slightly by 0.8%. Meanwhile, kerosene/paraffin prices decreased by 21.8%, petrol by 10.7%, diesel by 14.6%, and electricity for 50 kilowatts by 2.7%.
In addition, the cost of cooking gas and electricity also saw a reduction, albeit to a lesser extent. The price of a 13kg cooking gas cylinder went down by 0.07%, and electricity for 50 kilowatts dropped by 0.8% over the past month. Sugar, wheat, and fresh packeted cow milk continued to see marginal reductions in prices, with sugar dropping by 2.8%, wheat by 2.1%, and milk by 0.6%.
However, the good news was tempered by the rise in prices of other essential items. Cabbages, potatoes, oranges, beef, fish, onions, charcoal, bus fare, beans, petrol, and kerosene experienced price increases, dampening the impact of reduced inflation for some households. The month of September 2024 recorded a monthly inflation rate of 0.2%, while the annual inflation drop was mainly attributed to price changes in commodities under the Classification of Individual Consumption by Purpose (COICOP) divisions.
The Food and Non-Alcoholic Beverages Index showed a 5.1% increase over the last 12 months, reflecting ongoing pressures on food prices. Meanwhile, the Housing, Water, Electricity, Gas, and Other Fuels Index rose by 2.6%, and the Transport Index went up by 0.5% during the same period.
Despite the fluctuating prices, petrol and diesel rates remained steady, and a low, stable exchange rate has helped ease inflationary pressures over the past year. Kenya’s Consumer Price Index (CPI) for September 2024 stood at 3.6%, a marked improvement from the 6.8% recorded in September 2023, signaling a substantial decline in inflation.
The Consumer Price Index (CPI) is a critical macroeconomic tool used to track retail price changes across a basket of goods and services. It plays a crucial role in guiding policy decisions by reflecting the inflation rate as a percentage change in CPI between two periods. Retail prices for compiling the CPI are collected monthly from selected retail outlets across 50 data collection zones, with 14 in Nairobi and 36 in other urban areas.
This recent drop in inflation offers hope for more stable pricing in the coming months, but ongoing monitoring will be essential to ensure that households continue to benefit from these positive trends.
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Relief for Kenyans As Food Prices Reduced
