Inflation drops to 7.9 per cent despite rise in food, fuel prices

Kenya's inflation has dropped to 7.9 per cent in June, up from 8.0 per cent in the month of May.

This is despite an increase in the prices of basic commodities such as food, water, electricity, and fuel.

According to the latest Consumer Price Index (CPI) dated Friday, June 30, the Kenya National Bureau of Statistics (KNBS) stated that the inflation was due to a rise in the prices of commodities.

Food and non-alcoholic beverages accounted for 10.3 percent while housing, water, electricity, gas, and other fuels registered a 9.4 per cent increase, and transport (9.4 percent) between June 2022 and June 2023.

"These three divisions account for over 57 percent of the weights of the 13 broad categories. The CPI increased by 0.8 per cent from an index of 133.01 in May 2023 to 134.01 in June 2023," KNBS Director-General Macdonald Obudho noted.

The inflation rate in the month of April was 7.9 per cent, a significant drop compared to March 2023, which was 9.2 per cent.

However, despite the decrease in prices of diesel and petrol by 0.7 per cent and 0.4 per cent respectively between the months of May and June this year, the transport index went up slightly by 0.2 per cent.

KNBS alludes to the increase in prices of fares for Public Service Vehicles (PSVs) and flights during the same period.