Nairobi, January 2025– The Consumer Price Index (CPI) for December 2024 recorded a year-on-year inflation rate of 3.0%, indicating a 3.0% increase in the general price level compared to December 2023.1 This rise was primarily driven by escalating prices within the Food and Non-Alcoholic Beverages category (4.8%) and, to a lesser extent, the Transport sector (0.2%). Conversely, the Housing, Water, Electricity, Gas, and Other Fuels category experienced a slight price decline of 0.2%.2 These three divisions collectively account for over 57% of the CPI's weight.

The CPI, a measure of the cost of a fixed basket of goods and services, compares current prices to those of a base period (February 2019).3 It is derived from monthly surveys of retail prices conducted across 50 data collection zones nationwide.

Key Highlights:

Month-on-Month: The overall CPI increased from 140.81 in November 2024 to 141.66 in December 2024, resulting in a 0.6% inflation rate during this period.

Food and Non-Alcoholic Beverages: This category saw a 0.7% increase, with notable price hikes in maize flour (7.0%, 5.8%, and 1.8% for sifted, fortified, and loose varieties, respectively). However, prices of mangoes, potatoes, and cabbages declined.

Housing, Water, Electricity, Gas, and Other Fuels: This category rose 0.2% due to increased electricity prices (50 kWh and 200 kWh).

Transport: A 1.8% increase in this category was primarily attributed to a significant surge in bus/matatu fares in certain routes.

Outlook:

The 3.0% headline inflation rate in December 2024 underscores the continued impact of rising food prices on the overall cost of living. While the Transport sector also contributed to inflationary pressures, the slight decline in the Housing, Water, Electricity, Gas, and Other Fuels category offered some relief.

Notes

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