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Kenya’s Annual Inflation Rate Drops to 5.07% in February

BY Lynnet Okumu · March 1, 2022 09:03 am

KEY POINTS

Month-to-month Food and Non-Alcoholic Beverages Index increased by 0.83 percent between January and February 2022.

KEY TAKEAWAYS

The prices of maize and wheat are anticipated to increase in the coming months due to the acute shortage in the country caused by the ongoing Russia -Ukraine war that has hiked the global supply chain.

Kenya’s inflation in February dropped to 5.07 percent from 5.39 percent in January 2022 despite the public outcry over the price hike of basic commodities.

According to the latest data released by the Kenya National Bureau of Statistics (KNBS), the Consumer Price Index (CPI), increased by 0.40 percent to 119.115 in February, up from 118.642 in January 2022.

“This fall is mainly attributed to the increase in prices of commodities under; food and non-alcoholic beverages (8.69 percent), furnishings; household equipment and routine household maintenance (5.41 percent), housing, water, electricity, gas, and other fuels (4.79 percent) and transport (4.45 percent).

Month-to-month Food and Non-Alcoholic Beverages Index increased by 0.83 percent between January and February 2022.

“This was mainly due to an increase in prices of some food items, which outweighed the decrease in prices of others”, Said KNBS director-general, Macdonald Obudho.

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The cost of electricity measured by 50 units (kilowatts) was unchanged at 796.83 shillings during the month. The price of electricity was reduced by 15.7 percent in January 2022 marking the first phase of compliance with President Uhuru Kenyatta’s directive to cut the cost of electricity by 30.0 percent to reduce the cost of living.

During February, households paid more for food due to the increased cost of production.  For instance, cooking fat, capsicums (pili pili hoho), potatoes (Irish), and maize flour-sifted increased by 5.20, 3.69, 2.64, and 2.32 percent respectively.

A kilo of onion increased by 2.298 percent over the last month, from 127.94 shillings to 130.87 shillings in February. A 2-kg packet of sifted maize flour sold for an average of 129.25 shillings up from 126.31 shillings in January while one-liter cooking oil hiked from 142.05 shillings to 149.44shillings   in February.

The price of cabbage, which is widely consumed in the country, however, decreased slightly with a kilo averaging 49.82 shillings from 49.96 shillings in January.

The prices of maize and wheat are anticipated to increase in the coming months due to the acute shortage in the country caused by the ongoing Russia -Ukraine war that has hiked the global supply chain.

Obudho noted that the Prices of food items in February 2022 were relatively high compared to the prices of food items recorded in February 2021.

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