spot_img
11.5 C
London
HomeNEWSInflation drops to 10-month low of 7.9 percent

Inflation drops to 10-month low of 7.9 percent

Inflation drops to 10-month low of 7.9 percent

The cost of living in Kenya decreased in April to its lowest level in 10 months due to a moderation in the growth of food prices.

This was brought about by the onset of long rains, which led to increased production of certain vegetables. Inflation, which measures the cost of living over the last 12 months, dropped from 9.2% in March to 7.9% in April, according to the Kenya National Bureau of Statistics.

Data from KNBS indicates that household budgets on food grew at a slower rate of 10.1% YoY in April, compared to 13.4% in the previous month.

This is the slowest growth in inflation since June 2022, when it was at the same level.

Despite the easing of food prices, families had to face higher costs for electricity, housing, cooking gas, and other fuels, which were priced 9.6% higher on average than a year ago. This is an increase compared to the rise of 7.5% in March.

“The housing, water, electricity, gas and other fuels’ index increased by 2.7 percent between March 2023 and April 2023. This was mainly due to increase in prices of electricity, which increased 18.7 percent for 50 kilowatts and 13.7 percent for 200 kilowatts,” KNBS said.

The movement in food prices has the greatest impact on the overall price changes as it makes up almost a third of the shopping basket for Kenyan families. According to the data, the growth in average food prices was the slowest since March 2022 at 9.9%.

“The prices of (Irish) potatoes, beans and mangoes increased by 7.2, 5.0 and 3.5 percent, respectively, between March and April 2023.

“During the same period, prices of spinach, sukuma wiki (kale) and tomatoes declined by 12.6, 11.8 and 4.7 percent, respectively.”

In April, the average cost of transportation rose at a slower pace compared to the previous month, with a year-on-year increase of 9.8%, down from 12.6% in March.

There was also a slight increase of 0.2% in transportation costs from the previous month. President William Ruto, who was elected in September partly on a campaign to reduce the cost of living for the majority of poor households, has stated that there will be no quick solutions, and has dropped subsidies on unga and super petrol.

Despite this, the Ruto administration has not decreased the price of super petrol since October, instead using the money saved to subsidize the purchase of diesel while maintaining the cushion on kerosene. Inflation, however, remained above the upper target of 7.5%.

ALSO READ:

Inflation drops to 10-month low of 7.9 percent

latest articles

Explore More

LEAVE A REPLY

Please enter your comment!
Please enter your name here

error: Content is protected !!