July inflation falls to 4.36 pc on lower food and housing costs


July inflation falls to 4.36 pc on lower food and housing costs

In Summary

  • The disinflationary trend has been attributed largely to a slowdown in food and housing costs during the month.
  • The price of a kilogram of tomatoes for instance declined to Ksh.96.19 from Ksh.101.79 in June while the cost of Irish potatoes fell by 4.1 percent to Ksh.65.23.
  • The cool down in common user costs is expected to cushion Kenyans from a high cost of living against hardships brought forward by the Covid-19 pandemic.

Basic consumer prices continued to fall for the fourth straight month with July inflation cooling to 4.36 percent from 4.59 percent in June.

The disinflationary trend has been attributed largely to a slowdown in food and housing costs during the month.

The food and non-alcoholic drinks index reduced by 0.8 percent during the month as costs to certain food items among them tomatoes, Irish potatoes, spinach onions and sukumawiki.

The price of a kilogram of tomatoes for instance declined to Ksh.96.19 from Ksh.101.79 in June while the cost of Irish potatoes fell by 4.1 percent to Ksh.65.23.

Year on year food inflation however rose by 6.62 percent as items like meat and sugar registered a rise in costs within the month.

The housing, water, electricity and gas index meanwhile declined by 0.36 percent on the back of lower cost of water vendor services, house maintenance and some house rents.

The transport index however rose by four percent as diesel and petrol costs increased by 22.3 and 12.2 percent respectively during the mid-month review by the Energy and Petroleum Regulatory Authority (EPRA).

The cool down in common user costs is expected to cushion Kenyans from a high cost of living against hardships brought forward by the Covid-19 pandemic.

The decrease in costs has its basis on improved weather conditions to support agriculture in 2020 and muted consumer demand from the widespread economic disruptions arising from the global health emergency.

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Story By Kepha Muiruri
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