Understanding the three phases of inflation key in crafting solutions

Flour on sale at a supermarket in Nairobi. [Boniface Okendo, Standard]

No topic in the realm of economics has dominated Kenya conversation more than that of inflation.

Both households and businesses have been subjected to price shocks in recent years in a way that has forced them to change fundamental ways of how they operate. While headline inflation has been on a steady decline over the past few months, it only marks the end of the first phase.