Reduced rent, food prices drive down inflation to year low

A drop in rent, fuel and selected food prices pulled down inflation rate to its lowest in a year offering Kenyans reprieve in the wake of the coronavirus economic fallout.

The Kenya National Bureau of Statistics (KNBS) data shows that inflation rate dropped to 4.20 percent from 4.36 in August as households enjoyed a fall in the cost of basic commodities.

The price of a kilo of loose maize dropped highest to Sh48.20 from Sh48.96 reflecting a 1.54 percent drop followed by a kilogramme of maize flour that fell 1.07 percent to Sh122.32.

Food products that carry the biggest weight in the inflation basket rose by 0.15 percent but a combined fall in Liquefied Petroleum Gas (LPG), rent and kerosene pulled down the inflation rate.

“The housing, water, electricity, gas and other fuels index dropped by 0.15 percent in September 2020… this was mainly attributed to a drop in cost of cooking gas and kerosene by 1.29 percent and 0.60 percent respectively,” KNBS said yesterday.

A kilo of sukuma wiki (kales) dropped 0.26 percent to Sh48.28 from Sh48.41 a month earlier while a kilo of beans fell to Sh124. 04 from Sh124.24.

A kilo of peas rose highest to Sh146.04 from Sh128.45 a month earlier followed by a kilo of oranges that retailed at Sh64.26 from Sh61.90 leading to the rise in the inflation basket.

Rent prices dropped 0.03 percent to Sh6,276.65 for a doubled-roomed house as property owners and landlords offered relief to Kenyans hard-hit by the coronavirus pandemic, further pulling down rental prices.

The fall — the lowest since September last year when inflation was 3.83 percent — comes at a time the State further eased Covid-19 restrictions in efforts to jumpstart the battered economy.

Bars resumed operations on Tuesday while universities will start re-opening next week.