The Kenya National Bureau of Statistics (KNBS) reported a slight decrease in the annual inflation rate to 4.6% in June 2024, compared to 5.0% in May 2024. This indicates that the overall price level of goods and services increased by 4.6% in June 2024 compared to June 2023.

Key Drivers of Inflation:

• Transport: Despite a decrease in fuel prices (petrol and diesel), transportation costs remained the highest contributor to inflation (7.7% year-on-year increase).
• Food: Food prices rose by 5.6% year-on-year, with some vegetables like cabbage, spinach, and kale (sukuma wiki) experiencing significant price hikes (over 10%). However, the cost of oranges, sugar, and maize flour decreased slightly.
• Housing: The cost of housing, water, electricity, and gas increased by 3.1% year-on-year, driven mainly by rising electricity prices.

Data Collection:

The KNBS collects inflation data through a monthly survey of retail prices, targeting a representative basket of consumer goods and services across the country.

Looking Ahead:

The slight decrease in the inflation rate is positive news. However, the continued rise in the cost of transportation, some essential food items, and housing remains a concern for Kenyan households.

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Notes:

https://www.knbs.or.ke/reports/consumer-price-indices-and-inflation-rates-june-2024/