This archive report was first published on 31 August 2019.
Kenya's inflation rate has hit a five-month low of 5% in August, according to the Kenya National Bureau of Statistics (KNBS).
The easing of pressure on consumers' purchasing power is largely attributed to the decline in food prices during the month, with key agricultural commodities such as maize experiencing a considerable price drop.
As reported by the KNBS, the prices of sukumawiki, potatoes, cabbages, carrots, tomatoes, and maize grain (loose) decreased by 8%, 7.8%, 6.8%, 6%, 4.9%, and 2.8% respectively.
Additionally, falling fuel prices contributed to the decline in inflation, with petrol and diesel prices per liter decreasing by Ksh.2.86 and Ksh.3.28 respectively.
The stable Forex exchange rate also helped to mitigate the impact of non-food, non-fuel components on consumer spending, with the shilling's valuation against the US dollar ending its rot in August.
August's inflation rate, which follows a surge to a three-month high of 6.3% in July, is expected to ease pressure on the government's fiscal policy and keep consumer prices within the Treasury's prescribed inflation band of 2.5 to 7.5%.
