Inflation Trends In Kenya: A Closer Look At The January 2024 Consumer Price Fluctuations

By Steve Biko Wafula / Published February 1, 2024 | 11:59 am




KEY POINTS

Housing, Water, Electricity, Gas, and Other Fuels saw a monthly increase of 1.6%, driven by the surge in electricity costs by 11.4% for 200 kWh and 13.7% for 50 kWh usage, due to foreign exchange rate fluctuations. Meanwhile, Food and Beverages edged up by 0.4% within a month, marking a 7.9% year-on-year increase.


Inflation rate

In January 2024, Kenya experienced a notable inflation rate of 6.9%, as recorded by the Consumer Price Index (CPI) reports from the Kenya National Bureau of Statistics (KNBS). This rate was a 0.4 percentage point increase from December 2023.

The upward shift in inflation was primarily due to price rises in three major divisions: Transport, Housing (including utilities such as Electricity and Gas), and Food and Non-Alcoholic Beverages. Together, these sectors constitute over 57% of the CPI basket, indicating their significant impact on the overall cost of living.

The Transport sector, despite a monthly drop of 0.9%, still stood 10.6% higher than the same month the previous year, suggesting a long-term upward trend. This could be attributed to the global economic dynamics affecting fuel prices.

Housing, Water, Electricity, Gas, and Other Fuels saw a monthly increase of 1.6%, driven by the surge in electricity costs by 11.4% for 200 kWh and 13.7% for 50 kWh usage, due to foreign exchange rate fluctuations. Meanwhile, Food and Beverages edged up by 0.4% within a month, marking a 7.9% year-on-year increase.

Read Also: Inflation Up, Fuel Prices Up, More Taxes Loading, Tough Times For Kenyans

A deep dive into specific commodities reveals a mixed bag of price changes. Staple food items such as cabbages and oranges saw a significant monthly price increase, while costs for mangoes, tomatoes, and sugar dipped. This could reflect seasonal variations, market supply changes, or variations in demand. Notably, the price of kerosene—a common household fuel—fell by 2.4%, potentially easing the burden on lower-income households.

The bar graph represents the Monthly Consumer Price Index (CPI) from January 2023 to January 2024.
– The linear graph shows the Monthly Inflation Rate for the same. Both graphs have been credited to the Kenya National Bureau of Statistics (KNBS) and the analysis by www.sokodirectory.com.

The Education sector’s inflation of 2.8% year-on-year aligns with the expected seasonal trends, often coinciding with the start of a new school year and subsequent fee adjustments. The increase of 1.8% from December 2023 to January 2024 highlights the additional financial pressure on families during this period.

For visual representation, bar graphs could illustrate the month-on-month and year-on-year percentage changes in CPI for the various categories, providing a clear comparison of price movements. Linear graphs, on the other hand, would effectively show the trend of the overall CPI and inflation rates over the year, demonstrating the trajectory of economic pressures faced by consumers.

Therefore, the January 2024 inflation figures paint a picture of a dynamic economy where consumer prices are susceptible to a range of domestic and international forces. While some sectors show resilience or even deflationary trends, others are clearly under pressure, contributing to the overall inflationary environment. This analysis by Sokodirectory.com, supported by data from KNBS, offers insight into the complexities of managing household budgets amidst fluctuating prices.

Read Also: Kenyan Inflation In One Picture: Inflation Eased Its Grip But Cost Of Living Stands Firm




About Steve Biko Wafula

Steve Biko is the CEO OF Soko Directory and the founder of Hidalgo Group of Companies. Steve is currently developing his career in law, finance, entrepreneurship and digital consultancy; and has been implementing consultancy assignments for client organizations comprising of trainings besides capacity building in entrepreneurial matters.He can be reached on: +254 20 510 1124 or Email: info@sokodirectory.com

View other posts by Steve Biko Wafula


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