June inflation falls to 4.59 percent on low food costs


June inflation falls to 4.59 percent on low food costs
A customer unpacks products from a trolley at the counter inside a supermarket in Nairobi, Kenya April 8, 2019. REUTERS

Consumers have marked an extended relief to the pricing of common goods as the rate of inflation falls to 4.59 percent in June from an adjusted 5.33 percent rate in May.

The Kenya National Bureau of Statistics (KNBS) has largely attributed the decline in consumer costs over the last 12 months to cheaper food prices.

“This resulted from observed price decreases outweighing increases. For instance, prices of tomatoes, Irish potatoes, cabbages, oranges and wheat flour decreased by 12.16, 5.05, 4.84 and 4 percent, respectively in June 2020 relative to the prices in May 2020,” KNBS noted.

The food and non-alcoholic drinks index declined by 1.27 percent, a higher decrease from the 0.24 percent fall marked in May to leave the annual food inflation rate an improved 8.15 percent.

Similarly, the housing, water, electricity, gas and other fuels index declined by 0.81 percent supported in large part by lower kerosene costs which decreased u Ksh.21.33 during the mid-month review by the Energy and Petroleum Regulatory Authority (EPRA).

The transport index was however on the rise as a result of higher petrol costs which rose by 6.81 percent in the middle of June to offset decreases in the price of diesel.

The recent trend in inflation has signalled ongoing deflation which ushers a period of lower prices for common user commodities to Kenyans.

The inflation rate is expected to largely hold between the government target rate of 2.5 percent and 7.5 percent.

 

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Story By Kepha Muiruri
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