The Kenya National Bureau of Statistics (KNBS) has released a list of essential items whose prices recorded an increase and decrease in February 2024.
KNBS released the report which was reviewed in the period between January 2024 and February 2024.
According to the authority, the annual inflation rate as measured by the Consumer Price Index (CPI) decreased by 0.5 per cent from 6.9 per cent to 6.3 per cent in February.
The 6.3 percent inflation is the lowest since the March 2022 and remains within the Central Bank of Kenya (CBK) band of between 2.5 percent and 7.5 percent.
The report further revealed that the month of February recorded a monthly inflation rate of 0.1 per cent.
Inflation rate is defined as a percentage change of the Consumer Price Index (CPI) between two periods.
In a statement on Thursday, February 29, 2024, KNBS explained that the rise in annual inflation was mainly due to an increase in prices of commodities.
The listed commodities are under three indexes of Classifications of Individual Consumption by Purpose (COICOP) divisions.
“The first index of Transport increased by 10.8 per cent in the last 12 months (February 2023 – February 2024),” said KNBS.
On the other hand, Housing, Water, Electricity, Gas and Other Fuels Index increased by 8.4 per cent in the last 12 months.
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Food and Non-Alcoholic Beverages Index increased by 6.9 per cent in the last 12 months.
Prices of Commodities
In the report, the prices of nine selected items decreased while those of six other selected items increased.
The price of a kilogram of kale (Sukuma wiki) and a kilogram of spinach increased by 3.4 per cent and 3.9 per cent respectively.
Other food items whose prices increased include wheat flour (2kg), non-aromatic rice (2kg), potatoes (1kg) and beef (1kg).
KNBS stated that prices of carrots (1kg), fresh packet milk (500ml), beans (1kg), maize grain (1kg) and sugar (1kg) decreased at 0.4, 0.2, 0.6, 3.4 and 4.6 per cent respectively.
For non-food items the price of a liter of Diesel, Petrol and Diesel all decreased by 0.5 per cent.
Diesel is used by thermal power producers with Kenya Power passing on the additional cost to Kenyans.
However, monthly house rent for a single room and electricity recorded increased prices.
The cost of electricity on the other hand has remained high owing to a weak shilling that has pushed the price of refined petroleum.
Consumer Price Index
Consumer Price Index (CPI) is a key macroeconomic indicator used to monitor price movements and how they affect policy decisions.
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KNBS states that it is defined as a measure of the weighted aggregate change in retail prices paid by consumers for a given basket of goods and services.
Year-on-year inflation is used mainly for economic decision making as current situation is compared to previous year situation, same period.
Collection of retail prices for the compilation of the CPI is usually conducted during the second and third weeks of every month.
Prices of different commodities are also collected from selected retail outlets located in 50 data collection zones.
Out of the 50 data collection zones, 14 are located in Nairobi City County while 36 are located in other urban areas.
Nairobi zones cover outlets in lower income, middle income and upper income areas.
