Inflation Dropped 4.36 pct in July On Cheap Food and Housing Cost

Inflation Dropped 4.36 pct in July On Cheap Food and Housing Cost

The headline inflation for July decreased to 4.36 percent in July compared with 4.59 percent in June, driven largely by lower food and housing prices during the month.

According to the Kenya National Bureau of Statistics, on a monthly basis, inflation was 0.08 percent from 0.31 percent in June and is expected to remain within the target range in the near term.

On Wednesday, the Central bank’s Monetary Policy Committee (MPC) said inflation was well anchored, thanks to muted food price pressures, weakness in local demand as well as the impact of the reduction in VAT on prices of goods.

During the period, vegetables recorded the largest drop in price. In contrast, the cost of sugar and meat registered a slight increase. In July, Kenyans paid an average of Ksh 96.19 for a kilogram of tomato, Ksh 5.6 less than what they paid in June. 

“Prices of tomatoes, Irish potatoes, spinach, onions, and kale-sukuma wiki, registered decreases of 5.50, 4.09, 3.24, 3.06 and 2.62 percent, respectively in July 2020 compared to the prices in June 2020. However, during the same period, prices of offals (matumbo), mutton/goat meat, and sugar increased by 0.28, 0.58, and 3.65 percent, respectively,” reads the KNBS report.