Kenya’s July inflation rises to 6.5pc as food, electricity costs increase

Kenya’s July inflation rises to 6.5pc as food, electricity costs increase

NAIROBI, Kenya, July 31— Kenya’s inflation rose to 6.5 percent in July from 6.4 percent in June as higher electricity tariffs and rising food prices kept pressure on household budgets despite stable fuel prices and lower cooking gas costs.

Data released by the Kenya National Bureau of Statistics (KNBS) showed consumer prices increased by 0.2 percent between June and July, with the cost of food, transport and electricity remaining the biggest drivers of inflation.

This is the second consecutive month that inflation has remained above six percent after reaching 6.7 percent in May.

KNBS said the increase was mainly driven by Food and Non-Alcoholic Beverages, Transport, and Housing, Water, Electricity, Gas and Other Fuels, which together account for more than half of the consumer price index.

Food inflation stood at 9 percent compared to a year earlier. While consumers paid less for tomatoes, carrots and sifted maize flour during the month, prices of Irish potatoes, beef and mangoes increased, offsetting the gains.

Electricity bills also rose, with households consuming 200 kilowatt-hours (kWh) paying 3.1 percent more, while those using 50 kWh saw tariffs increase by 3.5 percent.

Consumers, however, received some relief after the cost of refilling a 13-kilogram LPG cylinder fell by 1.1 percent, while petrol and diesel prices remained unchanged during the month.

Transport costs also remained high, with annual transport inflation standing at 15.6 percent. Although fares for inter-town buses declined slightly, commuters paid more for city matatus and boda boda services.

The inflation data shows that food continues to have the biggest impact on household spending, contributing 2.6 percentage points to overall inflation, while transport added 1.5 percentage points.