Do you think the cost of living has been easing in Kenya for recent months? With the increase in fuel costs, millions of businesses shutting down, and people losing jobs, should the cost of living be high or low?
Well, according to the Kenya National Bureau of Statistics (KNBS), the inflation rate for the month of August was similar to that of the month of July at 4.36 percent.
Food and Non-Alcoholic Drinks’ Index decreased by 1.01 percent, while the year on year food inflation increased by 5.43 percent, in August 2020. This resulted from decreases in the prices of several food items
outweighing the increases.
“The price of onions, tomatoes, and spinach registered decreases of 16.38 percent, 12.05 and 7.51 percent respectively in August in comparison to July 2020,” said KNBS on Monday.
During the same period, prices of beans, mangoes, and peas increased by 2.17, 5.16, and 7.42 percent, respectively.
During the review period, the Housing, Water, Electricity, Gas, and Other Fuels Index, went up by 1.24 percent.
There was an increase in the cost of electricity and kerosene by 0.52 percent and 27.38 percent, respectively.
The Transport Index increased by 2.11 percent over the same period, mainly due to an increase in the pump prices of diesel and petrol by 2.97 percent and 3.41 percent, respectively.
In July, the National Treasury retained the inflation target at a median five percent for another calendar year as it sets the base on consumer costs as the enabler of its third medium-term plan implementation.
Normally, the inflation rate in Kenya is affected by an increase or reduction of fuel prices. In the past three months, the price of super petrol, diesel, and kerosene has been increasing steadily with the Energy and Petroleum Regulatory Authority (EPRA) attributing it to an increase in landing costs.
When the price of diesel, for instance, rises, prices of commodities often go up due to the increase in production costs since most manufacturers use diesel-powered generators to back up their energy demands.