Drop in energy costs pushes June inflation down to 6.4 per cent

Drop in energy costs pushes June inflation down to 6.4 per cent
Drop in energy costs pushes June inflation down to 6.4 per cent - Prices of tomatoes, beans and Irish potatoes declined slightly, providing some relief to consumers. (Photo: Wikimedia Commons)
Prices of tomatoes, beans and Irish potatoes declined slightly, providing some relief to consumers. (Photo: Wikimedia Commons)

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Earlier in the year, inflation stood at 4.4 per cent in January, eased to 4.3 per cent in February, returned to 4.4 per cent in March before climbing steadily in the following months.

Kenya's inflation eased marginally to 6.4 per cent in June from 6.7 per cent in May, helped by lower electricity and fuel prices, even as the cost of several essential food items continued to rise.
The slight easing follows a sharp increase in May when inflation accelerated to 6.7 per cent from 5.6 per cent in April.
Earlier in the year, inflation stood at 4.4 per cent in January, eased to 4.3 per cent in February, returned to 4.4 per cent in March before climbing steadily in the following months.

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KNBS data shows that the decline in inflation was supported by lower energy costs during the month.
The average cost of 200 kWh of electricity fell by about Sh59 to Sh5,476.34 from Sh5,535.22 in May.
Diesel prices in Nairobi also declined significantly to Sh222.86 per litre from Sh232.86, while petrol prices edged down marginally to Sh214.03 per litre from Sh214.25.

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However, households continued to face higher prices for several basic food commodities.
The cost of maize flour, sugar, fresh milk, maize grain, cooking oil, cabbage, and kale (sukuma wiki) all increased during the month.
In contrast, prices of tomatoes, beans and Irish potatoes declined slightly, providing some relief to consumers.
Year-on-year, the 6.4 per cent level was primarily driven by a rise in prices of items in the Food and Non-Alcoholic Beverages (8.6 per cent); Transport (16.1 per cent), and Housing, Water, Electricity, Gas and other fuels (3.4 per cent).
These three divisions together account for over 57 per cent of the total weight across the 13 major expenditure categories.
Core inflation, which excludes volatile items and reflects longer-term price trends, eased to 3.1 per cent in June from 3.2 per cent in May.
On the other hand, non-core inflation, which captures volatile food and energy prices, also declined to 15.1 per cent from 16.0 per cent, suggesting that while overall price pressures remain elevated, the pace of increase slowed.

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