Inflation has Dropped to a 10-month Low of 7.9 percent

Kenya’s cost of living index eased in April to a 10-month low as food prices increased moderately as a result of the start of prolonged rains, which have increased the production of some vegetables.

According to the Kenya National Bureau of Statistics (KNBS), inflation, a gauge of the cost of living over the previous 12 months, decreased from 9.2 percent in March to 7.9 percent on Friday.

According to KNBS data, household food budgets increased at a slower rate of 10.1 percent yearly in April compared to 13.4 percent the previous month.

Since June 2022, when it was at the same level, inflation has grown at the slowest rate.

“The housing, water, electricity, gas and other fuels’ index increased by 2.7 percent between March 2023 and April 2023. This was mainly due to increase in prices of electricity, which increased 18.7 percent for 50 kilowatts and 13.7 percent for 200 kilowatts,” KNBS said.

Since food makes up nearly a third of the average Kenyan family’s shopping basket, food generally has the biggest influence on the overall movement in prices.

According to the data, the increase in average food prices was 9.9 percent, which was the slowest since March 2022.

“The prices of (Irish) potatoes, beans and mangoes increased by 7.2, 5.0 and 3.5 percent, respectively, between March and April 2023.

“During the same period, prices of spinach, Sukuma wiki (kale) and tomatoes declined by 12.6, 11.8 and 4.7 percent, respectively.”

The increase in the average cost of transportation in April also decreased month over month and year over year, from 12.6 percent to 9.8 percent in April.

President William Ruto, who was elected in September in part on a promise to lower living expenses for the vast majority of poor households, has ruled out temporary solutions and stopped providing subsidies for unga and super petrol.

However, since October, the Ruto administration has refused to lower the price of super gasoline for consumers. Instead, it has used the money to subsidize the purchase of diesel while maintaining the cushion on kerosene.

However, the inflation rate continued to be higher than the upper target of 7.5 percent.