Kenya Inflation Remains Steady at 4.36% – But Transport and Utility Costs Rise

Kenya Inflation Remains Steady at 4.36% - But Transport and Utility Costs Rise

Mombasa’s MacKinnon Spice and vegetable Market PHOTO: @TourismMombasa

Kenya’s inflation remained unchanged at 4.36 percent in August similar to July on decreasing food prices, according to government data released on Monday.

The Kenya National Bureau of Statistics (KNBS) said the decline in food costs offset increases during the month.

“The price of onions, tomatoes, and spinach registered decreases of 16.38 percent, 12.05 and 7.51 percent respectively in August in comparison to July 2020,” the statistics office said in a statement on Monday.

The transport index increased by 2.11 percent due to an increase in the pump prices of diesel and petrol by 2.97 percent and 3.41 percent respectively.

Consequently, an increase in fuel costs saw the Housing, Water, Electricity, and Gas index rose by 1.24 percent as the cost of electricity and kerosene rose by 0.52 percent and 27.4 percent respectively.

“Stable inflation expectations should bode well with the central bank’s accommodative stance aimed at minimizing the glaring output gap. However, further easing may be unlikely in the immediate term.

Previous easing measures continue to filter through credit channels, evidenced by high liquidity. Moreover, the non-interest rate policy responses including fiscal support have to a greater
extent helped to stabilize financial markets.,” NCBA Market Research Analysts indicate in their inflation reaction report.

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