December Inflation Hits 5.71 Percent, The Highest in 2018

Inflation for the month of December was the highest for the year ended 2018 recording a rate of 5.71 according to stats from the Kenya National Bureau of Statistics (KNBS).

Food and Non-Alcoholic Drinks

The high inflation was mainly on the account of increase in food and non-alcoholic beverages.  Between November and December 2018, Food and Non-Alcoholic Drinks’ Index increased by 1.05 percent. Consequently, the year on year food inflation in December 2018 stood at 2.54 percent.

Maize flour recorded a dramatic fall in prices, probably owing to the interventions by the government aimed at cushioning poorer households from high prices of the staple food. A 2Kg packet of maize flour was retailing at an average price of 86.55 shillings in December 2018 compared to 101.97 shillings in December 2017.

Water, Housing, Electricity, Gas and Other Fuels

Water, Housing, Electricity, Gas and other Fuels’ Index increased by 0.07 percent in December compared to that in November. However, the cost of household electricity consumption for 50 KWh as well as for 200 KWh remained at the same level as in November 2017.

A 4Kg bag of Charcoal averaged at 141.31 shillings in December 2018 compared to an average price of 83.04 shillings in December 2017.

Transport

During the same review period, the Transport Index increased by 1.34 percent, mainly on account of increase in local and international flight charges as well as bus and matatu fares.

Average matatu fares by Country Buses for a 350Km trip were 1,245.94 shillings in December 2018 compared to an average of 1,059.56 shillings in December 2017.

Local Flights (return fares) fares averaged at 21,230.18 shillings in December 2018, an upsurge from December 2017 which averaged at 17,926.06 shillings.

The upsurge in the transport, food, clothing and foot ware prices was attributed to increased demand that was associated with Christmas festivities.

The image below shows the inflation rates between January and December 2018: