Living Expenses Decline in August: KNBS Survey

Kenyans saw a decrease in the cost of living in August, from 7.3% in July to 6.7% last month, which is primarily due to a decrease in the cost of most food items.

Between July 2023 and August 2023, the prices of loose maize grain, loose maize flour, fortified maize flour, potatoes, and tomatoes decreased by 8.2, 7.3, 6.1, and 3.5%, respectively. Mangoes, on the other hand, saw a 6.1% increase in price over the same time period.

Between July and August 2023, the index for alcohol, tobacco, and drugs increased by 0.7%. This was primarily due to a rise in the price of spirits of 0.7% during that time. The Housing, Water, Electricity, Gas, and Other Fuels Index was essentially unchanged between July 2023 and August 2023. This was mostly caused by a 1.5% and a 1.8% increase in the rates of power for 200 Kwh and 50 Kwh, respectively. In the months of July and August 2023, the cost of 13 kilograms of gas or LPG dropped by 2.8%. Between July 2023 and August 2023, the cost of gasoline and diesel remained the same, although the transport index increased by 0.3% during that time, primarily due to a hike in country bus fares to various places.

The Consumer Price Index (CPI), which measures year-over-year inflation, showed an overall inflation rate of 6.7% in August 2023, according to data from the Kenya National Bureau of Statistics (KNBS).

“During the reference month, all sectors continued to record general increase in prices. Prices of commodities under Transport; Food and Non-alcoholic Beverages; and Housing, Water, Electricity, Gas and other fuels, increased by 13.1, 7.5 and 7.5 per cent, respectively, between August 2022 and August 2023. These three divisions account for over 57 per cent of the weights of the 13 broad categories,” noted Macdonald Obudho, KNBS Director General.