The latest findings from the Kenya National Bureau of Statistics (KNBS) have shed light on a significant downturn in the prices of crucial commodities, both food and non-food, throughout the past month. The comprehensive report, spanning from February 2024 to March 2024, underscores a noteworthy decrease in prices across various essential items.
KNBS Report
Within the food category, six key items experienced a notable reduction in prices, ranging from 2.8 per cent to 9.6 per cent. These items include staples like carrots, wheat flour, maize grain, fortified maize flour, sugar, and maize flour.
Carrots, for instance, witnessed a 2.8 per cent decrease in price per kilogram, while the cost of a 2-kilogram packet of wheat flour declined by 4.8 per cent. Maize grain (loose) also saw a drop of 4.9 per cent in prices, and fortified maize flour experienced a 5.1 per cent reduction. Furthermore, sugar prices declined by 5.3 per cent, a sifted 2-kilogram packet of maize flour dropped by 5.8 per cent, and loose maize flour prices plummeted by a substantial 9.6 per cent.
Turning to non-food items, the report indicates a similar downward trend, with prices decreasing by 2.3 per cent to 3.5 per cent. The cost of kerosene per litre experienced a 2.3 per cent drop, while diesel and petrol prices declined by 2.6 per cent and 3.5 per cent, respectively. Additionally, the prices of electricity for both 50 Kilowatts and 200 Kilowatts decreased by 0.4 per cent and 0.3 per cent, respectively.
Positive news for Kenyans
This downward trajectory in prices has also had a positive impact on the overall inflation rate, which decreased from 6.3 per cent in the previous month to 5.7 per cent in March 2024. The inflation rate, a crucial economic indicator, reflects the percentage change in the Consumer Price Index (CPI) over a specified period. The CPI, in turn, measures the weighted average change in retail prices paid by consumers for a designated basket of goods and services.
The CPI encompasses various factors such as the transport index (which includes fuel prices), housing, water, and electricity indices, as well as the food and non-alcoholic beverages index. These indices collectively provide insights into how price movements impact consumer spending and inform economic policy decisions.
Overall, the recent KNBS report paints a picture of a market where essential item prices are on a downward trend, offering potential relief to consumers and influencing broader economic strategies.
