Reduction in cost of food eases inflation to 6pc
Posted Saturday, September 1 2012 at 10:48
- Falling food prices have been a major contributor to the drop in overall inflation.
Inflation declined further to 6.09 per cent in August from 7.74 per cent in July due to decreases in price of a number of food products across the country, the national statistics bureau said on Friday.
The Kenya National Bureau of Statistics (KNBS) noted that the Consumer Price Index (CPI), computed using the geometric mean approach, decreased by 0.31 per cent from 131.92 per cent in July to 131.52 per cent in August.
Prices of food items have declined to the lowest level in the past 12 months, thanks to harvesting that is ongoing in various parts of the country.
Falling food prices have been a major contributor to the drop in overall inflation, which stood at 19 per cent in January. Some of the food items whose prices have significantly declined to a record low include sukuma wiki (kales), potatoes, tomatoes, cabbages, onions, carrots and fruits.
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“During the review period, the food and non alcoholic drinks’ index decreased by 1.09 per cent as a result of decreases in their prices. Though notable price rises were observed in respect of some other food products in the same period, the net effect was a reduction in the food index,” read a statement from KNBS.
The statistics bureau said housing, water, electricity, gas and other fuels' index went up by 0.80 per cent between July and August.
However, the transport index went down by 0.82 per cent between July and August mainly due to falls in matatu, bus and taxi fares that reflect the continued trend in the reduction of petrol and diesel prices.