Kenya's Inflation Rises Marginally In August As Prices Of Irish Potatoes Soar

• Kenya National Bureau of Statistics noted annual inflation was mainly due to an increase in the prices of commodities classified as individual consumption by purpose
• The transport index increased by 3.9% in the last 12 months, while the housing, water, electricity, gas and index increased by 4.2%
• The prices of Irish potatoes, oranges and mangoes increased by 7.1%, 3.2% and 2.6% between July and August 2024

TUKO.co.ke journalist Japhet Ruto has over eight years of experience in financial, business, and technology reporting and offers profound insights into Kenyan and global economic trends.

Due to high food prices, Kenya's inflation has risen marginally to 4.4%, up from 4.3% in July.

Why Kenya's inflation rose in August

Data released by the Kenya National Bureau of Statistics on Friday, August 30, showed that annual inflation was mainly due to increased prices of commodities classified as individual consumption by purpose.

During the period under review, the transport index increased by 3.9% in the last 12 months, while the housing, water, electricity, gas and index increased by 4.2%.

At the same time, the food and non-alcoholic beverages index increased by 5.3% in the last 12 months.

"The overall year-on-year (annual) inflation rate, as measured by the Consumer Price Index (CPI) was 4.4%, in August 2024; a slight increase from an inflation rate of 4.3% recorded in July 2024," KNBS stated.

Which food items recorded a rise in prices?

The prices of Irish potatoes, oranges and mangoes increased by 7.1%, 3.2% and 2.6% between July and August.

In August, Irish potatoes retailed at an average price of KSh 130.57, an increase of 51.9% compared to KSh 85.95 reported during a similar period in 2023.

According to KNBS, CPI is a key macroeconomic indicator that monitors price movements and the effects on policy decisions.

"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," the statistics body explained.

What was the average inflation in quarter one?

KNBS said inflation eased to an average of 6.29% in quarter one of 2024 from a high of 9.13% in quarter one of 2023, driven by lower prices of food and non-alcoholic beverages.

At the same time, the Kenyan shilling strengthened from 149.63 to 126.37 against the United States (US) dollar.

On the other hand, the manufacturing sector’s real GDP was estimated to have expanded by 1.3% in quarter one 2024 compared to 1.7% growth in quarter one 2023.

Proofreading by Asher Omondi, current affairs journalist and copy editor at TUKO.co.ke.

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The prices of mangoes rose in August.

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