Commerce

Inflation rate slows down to 5.47 in May – KNBS report

Tuesday, June 2nd, 2020 00:00 |
Pump price. Photo/Courtesy

Inflation slowed down to 5.47 per cent in May from 5.62 per cent in April, a new data from Kenya National Bureau of Statistics (KNBS) shows.

At the same time, the consumer price index (CPI) increased by 0.63 per cent from 107.92 in April 2020 to 108.60 last month. 

According to the report, prices of produce such as onions, carrots, oranges, spinach and sukuma wiki rose by 4.51, 3.32, 2.57 2.24 and 1.96 per cent, respectively.

However, prices of avocado, Irish potatoes and tomatoes decreased by 4.50, 3.58 and 3.0 per cent, respectively.

Transport Index increased by 0.02 per cent, despite the decrease in prices of petrol and diesel by 9.81 per cent and 19.12 per cent, respectively, over the same period.

Super petrol

Mid-May, Energy and Petroleum Regulatory Authority (EPRA) reduced the cost of super petrol and diesel by Sh9.54 and Sh19.19 per litre respectively, a move that was expected to significantly reduce the cost of living.

This is considering that cumulative pump prices of super and diesel dropped by Sh27.54 and Sh23.23 per litre in the last two months.

Food and Non-Alcoholic Drinks’ index increased by 0.86 per cent between April and May 2020, while the year-on-year food inflation standing was at 10.55 per cent.

During the same period, Housing, Water, Electricity, Gas and Other Fuels’ Index, rose by 0.84 per cent, in what Mwangi attributed to a 3.17 per cent increase in the cost of kerosene, while cost of electricity dropped slightly. 

In April, inflation rate increased marginally to 5.62 per cent up from 5.51 per cent in March as higher food, transport costs increased pressure on consumer spending.

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