July inflation eases as foodstuff prices drop

Inflation slowed to 7.47 per cent in July from 9.21 recorded in June, with a marginal drop in prices of major foodstuffs.

The consumer price index (CPI) released yesterday by the Kenya National Bureau of statistics (KNBS) indicates that food and non alcoholic drinks index dropped by 2.05 per cent, attributing good weather in some parts of the country and government’s intervention to lower the cost of staple food items.

In June the CPI was at 187.64 compared to July figure of 185.39. The year on year food inflation dropped 3.62 per cent from last year’s 15.81 to 12.19 per cent.

This is the second time in the year the country’s inflation is moving back in the Central Bank of Kenya’s preferred ceiling of between 2.5 per cent and 7.5 per cent since January when it was at 6.99 per cent.

In February the country’s inflation was at 9.04, 10.3 in March and rose to 11.49 per cent in April.

In May, the country recorded the highest inflation rate of 11.7 per cent, forcing the government to intensify the maize flour subsidy programme.

The biggest impact in the food basket was potatoes with a kilogramme selling at Sh56.75 in July, down from Sh72.15 in June. A kilo of maize flour and dry maize dropped from Sh119.08 to Sh116.56 and Sh65.30 to Sh63.90 respectively

Other commodities whose prices dropped were sugar and milk. A kilo of sugar dropped from Sh156.28 in June to Sh150.16 last month while a half litre packet of milk dropped by shilling to sell at Sh60.35.

There was also a marginal drop in prices of major vegetables including cabbages, kale and onions.

Even so, prices of rice and wheat flour increased from Sh199.99 to Sh203.10 and Sh129.62 to Sh132.21 respectively.

Cost of electricity, fuel and transportation dropped due to the decrease in pump prices experienced since May.


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