Inflation hits three-month high on costly food, drinks

Kenya’s year-on-year inflation rose to a three-month high of 6.27 per cent in July, driven mainly by jump in the prices of food, drinks and transport costs.

The cost of living measure, which is higher than 4.35 percent recorded in July last year, ranks second highest this year since 6.58 percent was recorded in April. Inflation was 5.7 per cent in June.

The Kenya National Bureau of Statistics (KNBS) said the food and alcoholic segment, which accounts for 36.04 per cent of the consumer price index (CPI) weight, decreased by 1.04 per cent on cheaper July potatoes and vegetables compared to the previous month.

“The decline in price of these commodities outweighed the observed increase in the price of maize grain, maize flour, beef, carrots and onions which increased by 0.52, 1.33, 0.23, 6.81 and 1.19 per cent respectively over the period,” the KNBS said in a statement.

“Although prices of milk, cabbages and potatoes fell relative to June 2019, they remained above the July 2018 levels.”

On a month-on-month basis, consumer prices fell 0.36 per cent in July from a 0.69 per cent decline in June. Alcoholic beverages, tobacco and narcotics index, which make a paltry 2.06 per cent of the overall CPI weight, increased by 0.82 per cent.