Kenya’s January Inflation Rises to 5.69%

The rate of inflation in the country soared in January 2021 reaching 5.69% from 5.62% in December last year as pressure piles on consumer spending.

According to the Kenya National Bureau of Statistics (KNBS), consumer prices now stand at their highest since April 2020, with the general cost of living having accelerated in recent months.

Food inflation presently stands at 7.36% with the cost of commodities in the category rising by 1.3% last month.

The price of cooking oil has recorded the steepest jump at 10.4% with the average litre of oil retailing at Ksh227.66 in December 2020.

The price of white bread has also jumped by 6.6% to Ksh51.52 for a 400-gram pack from Ksh48.35 in December.

Other foods to register price increments include potatoes (2.1%), maize four (2.3%), and cabbages (3.4%).

Energy costs also increased by 0.31% while electricity and kerosene prices grew by 4.2% and 3.2% respectively.

Moreover, transport costs have soared by 1.1% following a 4.9% rise in diesel in the middle of the month.

The cost of living has risen gradually since hitting a year low of 4.2% in September last year.

However, the Central Bank of Kenya (CBK) has moved to ease fears over an untenable cost of living as it expects stability in prices.

“We expect overall prices to remain anchored and within the target band of 2.5% to 7.5%,” CBK Governor Patrick Njoroge told a news conference on Thursday.