This archive report was first published on 31 July 2020.
Kenya's inflation rate has hit a four-year low, falling to 4.36% in July, according to the Kenya National Bureau of Statistics (KNBS). This is the lowest rate since September 2019.
The drop in inflation is attributed to lower prices of food and housing, which carry the most weight in Kenya's inflation basket. Food prices and the price of alcoholic beverages fell by 0.80%, while the cost of rent fell by 0.36%.
Vegetables recorded the largest drop in price, with tomatoes selling for an average of Ksh 96.19 per kilogram in July, Ksh 5.6 less than what they cost in June. Irish potatoes sold for Ksh 65.23 in July, a Ksh 2.73 difference compared to Ksh 68.01 last month.
According to the KNBS report, prices of tomatoes, Irish potatoes, spinach, onions, and kale-sukuma wiki registered decreases of 5.50%, 4.09%, 3.24%, 3.06%, and 2.62% respectively in July 2020 compared to the prices in June 2020. However, prices of offals (matumbo), mutton/goat meat, and sugar increased by 0.28%, 0.58%, and 3.65% respectively during the same period.
The lower cost of most food items is attributed to favourable weather, lower demand, and lax tax measures introduced to lessen the blow of the pandemic.
Transport recorded the highest increase in cost, rising by 4.01% due to the uptick in fuel prices. Pump prices for Diesel and Petrol rose by Ksh 11 and Ksh 17 respectively in July.
