Consumer Prices in the Country Increased in August 2016

Between the months of July and August 2016, Food and Non-Alcoholic Drinks’ Index decreased by 0.19 percent, according to the Kenya National Bureau of Statistics consumer price indices and inflation rates.

This is said to be as a result of decrease in prices of some food items almost balancing out the increases. The year on year food inflation was 10.85 percent. Over the same review period, Housing, Water, Electricity, Gas and other Fuels’ Index, increased by 0.09 per cent.

This marginal increase was observed despite a – 3 – decline in the cost of cooking gas. Although the cost of electricity remained the same as that of July 2016, kerosene prices increased by 1.7 per cent, from an average of KSh.62.42 in July 2016 to KSh.63.45 in August 2016.

The Transport Index increased by 0.53 per cent in August 2016 compared to July 2016 mainly on account of increases in the pump prices of petrol and diesel. The overall inflation rate stood at 6.26 percent in August 2016.

Read: Drivers of Inflation in Kenya

National Average Retail Prices of Selected Commodities

Source: KNBS

Consumer prices in the country increased 6.26 percent year-on-year in August of 2016, following a 6.4 percent rise in July. The figure came below forecasts of 6.77 percent jump as housing and utilities cost rose at slower pace while transport prices fell.

According to a report from the Monetary Policy Committee (MPC), month-on-month overall inflation decreased to 6.3 percent in August 2016 from 6.4 percent in July. The month-on-month non-food-non-fuel (NFNF) inflation rose slightly to 5.0 percent in August from 4.9 percent in July. The report further noted that the 3-month annualized NFNF inflation had remained stable since June, an indication that there are no significant demand pressures in the economy.