July 25, 2021

Summary

The overall inflation level however masks the greater increases in the price of staple commodities

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Inflation in Kenya in a Year of Covid-19

Inflation in Kenya in a Year of Covid-19

It has been a tough year for ordinary Kenyans struggling to make ends meet against a background of Covid restrictions.

Data published by the Kenya National Bureau of Statistics (KNBS) covering the year June 2020 to June 2021, show an overall increase in inflation of 6.32 per cent as measured by the Consumer Prices Index (CPI).

Greater Rise in the Price of Staple Commodities

The overall inflation level however masks the greater increases in the price of staple commodities that make up the list of essential products that the majority of Kenyans need to survive.

Although the price of onions, leeks and bulbs has decreased over the year by 13.36 per cent, the cost of food and non-alcoholic beverages increased by 6.46 per cent; the cost of housing, water electricity and other fuels rose 4.25 per cent; and transport costs increased 14.71 per cent.

These figures too, hide the high rate of inflation in the price of petrol, up 41.66 per cent, and cooking fat the price of which has grown 15.85 per cent.

To the average man and woman on the street, the inflation figures mean that for every Sh100 spent they paid Sh8 more on food and beverages, and Sh14 more on housing, water and electricity.

Price increase were exacerbated following the end of government tax relief measures associated with Covid-19, an increase in global oil prices, and the reinstatement of the 16 per cent Value Added Tax rate.

The KNBS numbers are generated from data collected through monthly surveys of retail prices that target a representative basket of household consumption goods and services. The data collection is conducted in the second and third weeks of the month from a sample of retail oulets located in 50 data collection zones across Kenya.

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