Inflation rate drops by 0.8 percent, lowest since last year September

Business
By Esther Nyambura | Oct 02, 2024

A Jaza outlet is seen in Buruburu, Nairobi. [David Gichuru, Standard]

Kenya's inflation rate fell to 3.6 percent in September, down from 4.4 percent in August, according to the Kenya National Bureau of Statistics (KNBS).

The drop occurred despite rising costs for food and services, including education and transport. The rate represents a 3.2 percent decline compared to the same period last year.

KNBS Director Macdonald Obudho attributed the drop to a stable, low exchange rate.

A reduction in fuel prices also helped lower costs for housing, water, electricity, and gas, contributing to the overall decline in inflation.

Kerosene prices fell by 2.1 percent, and the cost of 50 kWh of electricity dropped by 0.8 percent. Petrol and diesel prices remained unchanged during the period.

Despite lower fuel prices, transport costs increased by 0.1 percent, which Obudho explained was due to a rise in city bus fares.

Food prices revealed mixed trends, with the cost of oranges rising by 5.2 percent and potatoes by 2.3 percent.

However, prices for sugar and wheat flour decreased by 2.8 percent and 2.1 percent, respectively. Overall, food prices increased by 0.4 percent.

This month's inflation rate is the lowest recorded since September 2023.

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