Increased Low Cost Of Living For Kenyans As July Inflation Falls To 4.36%

By Nsunjo Erica

Kenyans enjoying the low cost of living as basic consumer prices continued to fall for the fourth month with July inflation declining to 4.36 percent from 4.59 percent in June.

The disinflationary trend has been attributed largely to a slowdown in food and housing costs during the month.

The food and non-alcoholic drinks index reduced by 0.8 percent during the month as costs to certain food items among them tomatoes, Irish potatoes, spinach, onions, and sukumawiki reduced.

The price of a kilogram of tomatoes for instance declined to 96.19 shillings from 101.79 shillings in June while the cost of Irish potatoes fell by 4.1 percent to 65.23 shillings.

However, year on year food inflation rose by 6.62 percent as items like meat and sugar registered a rise in costs within the month.

Additionally, the housing, water, electricity, and gas index meanwhile declined by 0.36 percent on the back of lower cost of water vendor services, house maintenance and some house rents as the pandemic his hard.

The transport index however rose by four percent as diesel and petrol costs increased by 22.3 and 12.2 percent respectively during the mid-month review by the Energy and Petroleum Regulatory Authority (EPRA).

According to analysts, the decline in common user costs is expected to cushion Kenyans from a high cost of living against hardships brought by the COVID-19 pandemic as It continues to hit hard following high levels of unemployment.

Analysts added that the decrease in costs has its basis on improved weather conditions to support agriculture in 2020 and muted consumer demand from the widespread economic disruptions in supply chains arising from the global health emergency.

Additionally, the COVID-19 pandemic saw the closure of several businesses like schools, stadiums, parks, and some restaurants to whom farmers supplied most of their harvests, this flooded local markets with a variety of food and other goods at reduced prices.