Economy: Kenyan Cost of Living Ease by 5% in April 2024 Shown by Food Index & Fuel Cost.
In April, the cost of living, also known as inflation, went down from 5.7% in March to 5.0%, according to new data from the Kenya National Bureau of Statistics (KNBS).
The food and non-alcoholic beverages index, which has the most impact, went down by 0.1% from March to April. Prices for sugar, loose maize grain, and fortified maize flour decreased during this time. However, prices for onions, leeks, bulbs, tomatoes, and oranges increased by 5.8%, 4.3%, and 4.0%, respectively.
The housing, water, electricity, gas, and other fuel index decreased by 1.3% between March and April, mainly due to a drop in kerosene prices by 9.7%. Prices for 200kWh and 50kWh of electricity also went down by 6.4% and 7.7%, respectively. However, gas prices rose by 0.3% during this period.
The transport index also went down by 0.3% between March and April 2024, primarily because petrol and diesel prices dropped by 2.7% and 5.2%, respectively.
In the April-May fuel review, the Energy and Petroleum Regulatory Authority (EPRA) reduced petrol and diesel prices by KSh 5.31 per litre and KSh 10 per litre, respectively. Currently, a litre of Super petrol sells at KSh 193.84 in Nairobi, while Diesel sells at KSh 180.38.
The Monetary Policy Committee (MPC) noted during its last meeting that overall inflation is expected to keep decreasing in the near future. This is supported by lower food and fuel prices and the effects of recent exchange rate improvements.
Kamau Thugge, Chairman of the Monetary Policy Committee, mentioned that “Overall inflation is expected to moderate further in the near term, supported by easing food and energy prices, pass-through effects of the recent exchange rate appreciation, and the impact of monetary policy actions which continue to filter through the economy.”
As a result, the MPC decided to keep the Central Bank Rate (CBR) at 13%, ensuring that overall inflation keeps moving towards the 5.0% mid-point target range.
