The overall year-on-the-year inflation rate for the month of August stood at 6.57 percent mainly driven by rising prices of commodities.
According to data by the Kenya National Bureau of Statistics (KNBS), prices of food and non-alcoholic beverages rose by 10.67 percent, transport by 7.93 percent, and housing, water, electricity, gas, and other fuels rose by 5.07 percent on a year0to-year.
The Consumer Price Index (CPI) increased by 0.23 percent from a revised index of 115.446 in July 2021 to 115.710 in August 2021. The month-to-month Food and Non-Alcoholic Drinks Index increased by 0.46 percent between July 2021 and August 2021.
Read More: Kenyans Are Borrowing Ksh 1.2 Billion From Fuliza Daily
The prices of cabbages, spinach, and oranges increased by 3.74, 3.06, and 2.44 percent, respectively. In contrast, prices of potatoes and onions (leeks and bulbs) decreased by 0.48 percent and 0.30 percent, respectively.
The Housing, Water, Electricity, Gas, and Other Fuels’ Index, increased by 0.32 percent between July 2021 and August 2021. This was mainly attributed to the increase in prices of cooking fuel and house rent in spite of the slight decrease in the price of electricity.
Transport Index decreased by 0.32 percent mainly due to decreases in bus fares of country and city public service vehicles as shown in Table 3. This is mainly as a result of the return to carrying of full capacity for public service vehicles in the month of August 2021.
Read More: Common Food Items Push Kenya’s Inflation Rate to a High of 8.8 Percent
The inflation rate in Kenya is largely driven by the rise in the prices of fuel and food. Every time, the price of fuel goes up, Kenyans pay more for transport and other common goods consumed on a daily basis. The government says it is working to cushion Kenyans.
Will the cost of living for Kenyans ever come down?