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June inflation down to four-year low on easing food prices

Inflation for the month of June declined to 4.6 per cent from 5.1 per cent in May. (Photo: Cato Institute)

By Alfred Onyango | Sunday, June 30, 2024

The level is the lowest record in the past four years, as a similar mark was last recorded in June 2020.

Inflation for the month of June declined to 4.6 per cent from 5.1 per cent the previous month, on the back of reduced prices of some food commodities during the month.

The level is the lowest record in the past four years, as a similar mark was last recorded in June 2020.

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The latest figures by the Kenya National Bureau of Statistics (KNBS) show prices of oranges, sugar, and maize flour-sifted dropped by 2.5, 2.4 and 2.0 per cent, respectively between May 2024 and June 2024.

"Conversely, prices of cabbage, spinach and Kale (sukuma wiki) increased by 14.8, 11.3 and 10.7 per cent, respectively, in the period under review," KNBS says.

"In general, the Food and Non-Alcoholic Beverages Index increased by 0.7 per cent between May 2024 and June 2024."

Housing, Water, Electricity, Gas and Other Fuels Index increased by 0.4 per cent between May 2024 and June 2024 mainly due to the rise in prices of 200 kWh and 50 kWh of electricity by 2.9 per cent and 3.4 per cent, respectively.

This is despite a drop in the prices of gas/LPG and kerosene by 0.3 per cent and 3.4 per cent, respectively, during the period.

On the other hand, the Transport Index dropped by 0.2 per cent between May 2024 and June 2024 mainly due to a decrease in prices of petrol and diesel by 1.6 per cent and 3.4 per cent, respectively.

Year-on-year, the 4.6 per cent mark means the general price level in June 2024 was 4.6 per cent higher than that of June 2023.

The price increase was mainly driven by the rise in prices of commodities under Transport (7.7 per cent); Food and Non-Alcoholic Beverages (5.6 per cent); and Housing, Water, Electricity, Gas and other fuels (3.1 per cent) between June 2023 and June 2024.

The three divisions account for over 57 per cent of the household consumed commodities.