Consumers feel the pinch as January inflation rate rises to 6.9pc

Kenya’s inflation rate has risen by 30 basis points in January to stand at 6.9pc on account of higher transport, food and electricity costs.

Latest data by the Kenya National Bureau of Standards (KNB) indicates that year-on-year price of commodities under transport index surged by 10.6pc, housing, Water, electricity, gas and other fuels by 9.7pc while Food and Non-Alcoholic Beverages went up by 7.9pc between January 2023 and January 2024.

According to KNBS, the increase in inflation rate from 6.6pc registered in December last year was driven by  rise in prices of cabbages, carrots, oranges and potatoes which went up by 10pc, 7.4pc, 3.1pc and 1.7pc respectively between December 2023 and January 2024. As a result, month-on-month Food and Non-Alcoholic Beverages Index rose by 0.4pc.

“During the same period, however, prices of mangoes, tomatoes and sugar dropped by 3.8pc, 3.6pc and 2.2pc respectively,” said Macdonald Obudho, KNBS Director General.

The 1.6pc rise in Housing, Water, Electricity, Gas and Other Fuels’ Index was mainly driven by increase in prices of 200 kWh and 50 kWh of electricity by 11.4pc and 13.7pc as a result of increase in price of foreign exchange rate fluctuation adjustment per kWh by 103.1 per cent.

However, the fall in fuel prices which saw Transport Index drop by 0.9pc was not enough to counter the squeeze in consumers’ wallets even as a litre of kerosene, diesel and super petrol reduced by 2.4c, 2.5pc and 2.3pc respectively.