This archive report was first published on 30 November 2019.
Kenya's inflation rate surged to 5.6% in November, a significant increase from the 4.95% recorded in October. The rise in inflation was largely attributed to increased food prices.
According to the Kenya National Bureau of Statistics (KNBS), other items on the consumer basket that experienced price hikes included mineral waters, rent, charcoal, kerosene, petrol, and diesel.
Notably, the prices of Irish potatoes, tomatoes, sifted maize flour, green grams, and mineral waters increased during the same period. Specifically, a kilo of Irish potatoes rose from KSh 66.64 to KSh 71.32, a 7% increase, while a kilo of tomatoes increased from KSh 90.28 to KSh 95.78, a 6.1% rise.
Over the past year, the cost of a 2kg packet of sifted maize flour has increased by 55% from KSh 84.32 in November 2018 to KSh 130.77 in November 2019. Meanwhile, the price of a kilo of tomatoes has risen by 43.1% from KSh 66.93 in November 2018 to an average price of KSh 95.78 in November 2019.
On the other hand, the prices of a litre of kerosene, petrol, and diesel have dropped by 4.3%, 5.6%, and 3.6% respectively over the last year.
Between October and November 2019, the Housing, Water, Electricity, Gas, and Other Fuels' Index increased by 0.29%, mainly due to an increase in the cost of rent and cooking fuels. However, the price of LPG Gas decreased by 1.1% during the same period.
Additionally, the Transport Index increased by 0.29% due to an increase in prices of diesel and petrol.
On November 25, the Monetary Policy Committee (MPC) of the Central Bank of Kenya (CBK) lowered the Central Bank Rate to 8.50% from 9.00%. The MPC noted that while inflation expectations remained well-anchored within the target range, the economy still operated below its potential.
