A breakdown of how the Rate of Inflation affected different consumer commodities in Kenya

Written by
Rate of Inflation
  • 5 years ago
  • Posted: January 3, 2017 at 10:00 am

Happy New Year!

Each month the Kenya National Bureau of Statistics (KNBS) releases Consumer Price Indices (CPI) and rates of inflation. The overall inflation rate for December stood at 6.35 percent, compared to 6.68 percent in November. The CPI increased by 0.76 percent from 173.85 in November 2016 to 175.18 in December 2016.  .

According to KNBS, these numbers were generated using data collected during the second and third weeks of the month of December. The prices were obtained from selected retail outlets in 25 data collection zones which are located in Nairobi and in 13 other urban centres. KNBS has not outlined the specifics.

Food and Non-Alcoholic Beverages’ Index increased by 1.31 percent, due to the increase of prices of several food items. The year-on-year food inflation stood at 11.22 percent in December 2016.

Housing, Water, Electricity, Gas and Other Fuels’ Index increased by 0.41 percent. This was partly due to increase in electricity, house rents and kerosene which outweighed notable falls in the cost of cooking gas. The cost of electricity increased as a result of fuel adjustment charges that increased from Ksh.2.34 per KWh in November 2016 to Ksh.2.85 per KWh December 2016.

On the other hand, the Transport Index increased by 0.49 percent mainly due to increases in the pump prices of petrol and diesel as well as higher bus fares associated with Christmas festivities.

The table below highlights One Month and Twelve Months’ Changes in the Price Indices.

Broad Commodity Group CPI Weight % Change on last month (December 2016/November 2016) % Change on same month of previous year (December 2016/December 2015)
Food & Non-Alcoholic Beverages 36.04 1.31 11.22
Alcoholic Beverages, Tobacco &


2.06 0.47 2.73
Clothing & Footwear 7.43 0.79 4.38
Housing, Water, Electricity, Gas

and other Fuels

18.3 0.41 0.06
Furnishings, Household

Equipment and Routine

Household Maintenance

6.16 0.27 3.26
Health 3.13 0.00 3.09
Transport 8.66 0.49 0.29
Communication 3.82 0.00 1.54
Recreation & Culture 2.25 0.06 4.41
Education 3.14 0.00 4.02
Restaurant & Hotels 4.48 0.20 4.98
Miscellaneous Goods & Services 4.52 0.64 3.57
Total 100 0.76 6.38
What is your opinion on the topic?
See also  The Official Launch of The Taifa Laptop
Article Categories: