Inflation rate reduced by 2.5 % in the past year – KNBS
The country’s inflation rate has reduced by 2.5 per cent in the last year.
According to the Kenya National Bureau of Statistics (KNBS), the inflation rate stood at 9.1 percent in December 2022, marking a contrast with the 6.6 percent recorded in December 2023.
This is the rate as measured by the Consumer Price Index (CPI).
The CPI, as defined by KNBS, is an assessment of the combined and weighted fluctuations in retail prices that consumers pay for a specific assortment of goods and services.
“This was mainly driven by increases in prices of commodities under transport (11.7%); housing, water, electricity, gas, and other fuels (8.3%); and food and non-alcoholic beverages (7.7%) between December 2022 and December 2023,” the Bureau said.
It was mentioned that the three segments responsible for influencing the fluctuation in the inflation rate make up 57 percent of the combined importance of the 13 broader categories.
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Other divisions comprised alcoholic drinks, tobacco, and narcotics, representing 8.5 percent during the examined period. Clothing and footwear constituted 3.0 percent, while furnishings, household appliances, and regular household upkeep accounted for 3.5 percent. Health stood at 2.8 percent, and information and communication at 1.2 percent.
Leisure activities, sports, and cultural sectors experienced a growth of 5.1 percent, while education services saw a 1.9 percent increase. Restaurant and accommodation services went up by 3.8 percent, while insurance and financial services saw a modest rise of 0.8 percent. Personal care, social protection, and various other goods and services collectively surged by 6.3 percent.
In response to the decrease, Isaac Mwaura, the government spokesperson, mentioned that Kenya is experiencing notably low inflation in comparison to other nations.
“This means that the rate at which prices are rising has decelerated and the rate of increase of consumer prices has significantly slowed down,” he said.
He further stated that the reduced inflation rate is a clear indication that the country’s economy is stabilizing.
“… a reflection of the effective monetary policy and control put in place by President Ruto and the Kenya Kwanza administration,” Mwaura said.
Inflation rate reduced by 2.5 % in the past year – KNBS