Food and transport costs keep December inflation high
A trader sorts tomatoes at her stand at Chaka market in Nyeri County. High food and transport prices continued to be the main pressing issues for households in December, even as inflation fell for the second consecutive month to 9.1 per cent.
High food and transport prices continued to be the main pressing issues for households in December, even as inflation fell for the second consecutive month to 9.1 per cent.
The Kenya National Bureau of Statistics (KNBS) in the Consumer Price Index (CPI) released yesterday showed that among commodities that sustained inflation at the high rate were food and non-alcoholic beverages at 13.8 per cent, transport at 13 per cent, and housing, water, electricity, gas and other fuels at 6.2 per cent.
“The three divisions account for 57 per cent of the weights of the 13 broad categories,” KNBS reported.
But the 9.1 per cent December inflation was a fall from the 9.5 per cent inflation recorded in November, marking a positive trend from a high of 9.6 per cent in October- the highest rate since May 2017.
According to the KNBS index, some of the key aspects that have contributed greatly to December’s high inflation are related to the demand and spending during the festive season, mainly transport and clothing prices.
KNBS noted that prices for alcoholic beverages, tobacco and narcotics also increased by 7 per cent in December compared to a similar period last year, while those of furnishings, household equipment and routine household maintenance rose by 9.9 per cent.
November comparison
Compared to November, prices for transport rose highest at 2.3 per cent, followed by housing, water, electricity, gas and other fuels category at 0.7 per cent, and clothing and footwear at 0.6 per cent, understandably due to the festive season when they are always in high demand.
“The month-to-month food and non-alcoholic beverages index increased by 0.3 per cent between November 2022 and December 2022,” KNBS stated.
Among food items, tomato prices rose by 8.9 per cent from Sh89.43 per kilo in November to Sh97.4 in December, while 50 kilowatts of electricity rose by 8.2 per cent from Sh940.74 to Sh1,017.98.
One-way transport from Nairobi to Voi at Country Bus, however, recorded the greatest increase among individual commodities, rising by 13.3 per cent from Sh1,500 in November to Sh1,700 in December.
“The transport index increased by 2.3 per cent between November 2022 and December 2022 mainly due to increase in prices of country bus fares,” the Bureau stated.
Inflation has remained above the Central Bank of Kenya (CBK) 7.5 per cent band since June, with food, fuel and transport prices the main contributors, as households continue facing a high cost of living.
