Commodities Whose Prices Increased Rapidly In August 2022

In the latest figures released by the Kenya National Bureau of Statistics (KNBS), the Consumer Price Index (CPI), which measures the percentage change in the price of a basket of goods and services consumed by households, increased by 0.4 percent from an index of 125.05 in July 2022 to 125.58 in August 2022.

The month-to-month Food and Non-Alcoholic Beverages Index according to KNBS, increased by 0.5 percent between July 2022 and August 2022.

Relative to July 2022, prices of Maize flour- loose, sugar, and mangoes increased by 4.7, 4.6, and 4.1 percent in August 2022, respectively.

A kilo of loose maize flour retailed at 78.4 shillings during the month while a kilo of sugar retailed at 135.18 shillings. However, a 2kg packet of maize flour that on average cost 126 shillings in January is now retailing at a high of 230 shillings.

During the same period, prices of carrots and onions-leeks dropped by 6.4 percent and 2.4 percent, respectively.

The price of a kilo of carrots dropped to 98.59 from 105.31 shillings in July, while the price of a kilo of onions-leeks dropped to 124.1 from 127.12 shillings.

A liter of cooking oil that cost an average of 305 is retailing at above 460 shillings while half a kilo of cooking oil that cost 142 shillings now goes for 213 shillings.

Alcoholic beverages, tobacco, and narcotics Index also increased by 0.7 percent between July 2022 and August 2022.

This was mainly due to an increase in prices of beer (lagers and stouts) and wines which increased by 1.2 percent and 0.8 percent respectively

The increase in the cost of basic commodities in the country has pushed inflation to levels projecting tough economic times ahead.

Monthly inflation data by the Kenya National Bureau of Statistics (KNBS) shows the country’s overall rate of inflation in August stood at 8.5 percent compared to 8.3 percent in July.

This rate has remained in breach of the government’s target of 2.5 to 7.5 percent which is targeted and pursued to maintain stability in prices in the domestic market, for the third consecutive month.

Meanwhile, the Housing, Water, Electricity, Gas and Other Fuels Index, increased by 0.3 percent between July 2022 and August 2022 partly due to an increase in the price of house rent- single rooms.

The increase in food prices is majorly attributed to drought causing shortages and of course the war in Ukraine.

There is also an inverse relationship between the dollar and commodities since the value of the dollar influences commodities prices given the currency’s use as a benchmark pricing mechanism for most commodities.

The shilling has been weakening against the US Dollar making imports more expensive with the global supply chain affecting shipping trends, which has further led to increased freight costs.

The slowdown in global industrial production is also consistent with softer commodity prices ahead.

Kenyans are hopeful that the new government, whichever side cliches the top sit, will find a way to reduce the cost of living.

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