UncategorizedKenya’s Inflation Declines to 6.45% in October Backed by Lower Fuel Prices

Inflation [Image: Getty]

The inflation rate in Kenya, which measures the cost of living, slowed modestly to 6.45% in the month of October from 6.91% in September, the highest inflation rate in 19 months.

Kenyans paid more for food and non-alcoholic beverages at 1.11%; housing, water, electricity, gas and other fuels; while paying less for transport due to a drop in fuel prices at the pump.

The Consumer Price Index (CPI) increased by 0.51 per cent to 116.674 in October 2021, while the month-to-month Food and Non-Alcoholic Drinks’ Index increased by 1.11 per cent between September 2021 and October 2021.

This was mainly attributed to increasing in the price of some food items, which outweighed the decrease in others.

The Transport Index decreased by 0.35 per cent mainly due to a drop in the price of petrol and diesel, which went down by 3.69 per cent and 4.29 per cent, respectively between September and October 2021.

The Housing, Water, Electricity, Gas and Other Fuels’ Index, increased by 0.67 per cent between September 2021 and October 2021. This was mainly attributed to increasing in prices of cooking gas (LPG), electricity and house rent. During the same period, prices of kerosene/paraffin decreased by 6.51 per cent.

The overall year on year inflation rate as measured by the Consumer Price Index (CPI) was 6.45 % in October 2021. This was mainly driven by an increase in prices of commodities under food and non-alcoholic beverages (10.60 per cent); transport (8.15 per cent); and housing, water, electricity, gas and other fuels (5.80 per cent) between October 2020 and October 2021.

Relative to September 2021 , prices of tomatoes, oranges and sugar increased by 3.53, 3.12 and 2.50 per cent, respectively. On the other hand, prices of spinach, beans and potatoes decreased by 2.73, 0.45 and 0.36 per cent, respectively.

Overall, food prices in October 2021 were relatively higher compared with foods prices recorded in October 2020.

Read also; Kenya’s Inflation Rises to 19-Month High at 6.91% Pushed by Rising Energy Costs.

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