August Inflation Rate At 4.36, Similar To The Month Of July

The inflation rate for the month of August remained unchanged to 4.36 percent, the same rate that was recorded during the month of July.

According to the Kenya National Bureau of Statistics (KNBS), the rate remained steady as a result of a decline in the greater food costs which offset increases during the month.

“The price of onions, tomatoes, and spinach registered decreases of 16.38 percent, 12.05 and 7.51 percent respectively in August in comparison to July 2020,” the statistics office said in a statement on Monday.

According to KNBS, Food and Non-Alcoholic Drinks’ Index decreased by 1.01 percent, while the year on year food inflation increased by 5.43 percent, in August 2020. This resulted from decreases in the prices of several food items outweighing the increases.

During the same period, prices of beans, mangoes, and peas increased by 2.17, 5.16, and 7.42 percent, respectively. During the review period, the Housing, Water, Electricity, Gas, and Other Fuels Index, went up by 1.24 percent.

There was an increase in the cost of electricity and kerosene by 0.52 percent and 27.38 percent, respectively. The Transport Index increased by 2.11 percent over the same period, mainly due to an increase in the pump prices of diesel and petrol by 2.97 percent and 3.41 percent, respectively.

Many Kenyans, however, are likely to differ with the figures given by the Kenya National Bureau of Statistics, given how the prices are reflecting “on the ground.” The month has seen prices of basic commodities spike as Covid-19 continues to bite across economies.

The price of fuel has also been increasing on a monthly basis, a move that has seen manufacturers hike the price of their products and services just too meet the costs of fuel. Millions of Kenyans have also lost their jobs as businesses struggled to stay afloat by laying off people due to the impact of Covid-19.

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