Kenyans dug
deeper into their pockets in July as the cost of living edged higher, driven
largely by persistently high transport and food prices.
Data released by the Kenya National Bureau of Statistics (KNBS) on Friday shows annual inflation rose to in July from 6.4 per cent in June, reversing the previous month's slowdown.
This marks the third consecutive month that inflation has remained above the midpoint of the Central Bank of Kenya's (CBK) target range of 2.5 per cent to 7.5 per cent.
Although the reading came in slightly below the CBK's projection of 6.7 per cent, it underscores persistent price pressures across the economy, particularly in transport and food, which account for a significant share of household spending.
The latest increase follows June's modest easing, which had ended four straight months of rising inflation and raised hopes that the cost of living was beginning to stabilise.
Transport remained the biggest contributor to inflation, with prices soaring 15.6 per cent compared to a year earlier.
According to KNBS, the increase reflects the lingering impact of previous fuel price hikes, even though pump prices remained unchanged during the latest monthly fuel price review by the Energy and Petroleum Regulatory Authority (EPRA).
The higher transport costs have continued to ripple across the economy by raising the cost of moving goods and people, ultimately feeding into the prices of other products and services.
Food prices also remained elevated, with the Food and Non-Alcoholic Beverages index rising nine per cent over the past year.
The increase reflects continued supply constraints linked to weather patterns, higher transportation costs and elevated distribution expenses.
However, there was some relief for consumers during the month. Prices of tomatoes fell by 3.7 per cent, carrots declined by 3.6 per cent, while sifted maize flour dropped by 1.6 per cent between June and July.
The gains were partly offset by increases in other commonly consumed foods. Irish potatoes became 2.1 per cent more expensive, while mangoes posted the largest monthly increase among selected food items, rising 3.2 per cent.
Underlying inflationary pressures also strengthened modestly.
Core inflation, which excludes volatile food and energy prices, increased to 3.2 per cent from 3.1 per cent in June, suggesting that price increases are becoming more broad-based across the economy rather than being confined to food and fuel.
Beyond food and transport, several household expenses also increased during the month.
Electricity tariffs rose by 3.5 per cent for households consuming 50 kilowatt-hours and 3.1 per cent for those using 200 kilowatt-hours.
The increase came despite a 1.1 per cent decline in liquefied petroleum gas (LPG) prices, providing only limited relief for cooking fuel costs.
Consumers also faced higher prices for alcoholic beverages, clothing, household goods and healthcare.
Prices under the Alcoholic Beverages, Tobacco and Narcotics category rose 2.6 per cent over the past year, while Clothing and Footwear increased 2.2 per cent.
Household furnishings and maintenance costs climbed 2.4 per cent, and healthcare inflation stood at 2.8 per cent, driven partly by higher medicine prices, including antibiotics and diabetes medication.
Transport charges within towns also edged up, with city bus and matatu fares increasing 0.3 per cent, while boda boda fares rose by the same margin.
Inter-town bus fares, however, recorded a marginal decline of 0.3 per cent.
The latest inflation figures come just weeks after the CBK left its benchmark lending rate unchanged at 8.75 per cent for a second consecutive Monetary Policy Committee meeting, signalling a cautious approach as policymakers monitor domestic inflation, global energy prices and slowing regional economic growth.
Attention now shifts to the MPC meeting scheduled for August, where officials will determine whether the current monetary policy stance remains appropriate.
Economists expect the central bank to maintain its wait-and-see approach unless inflation accelerates further or fresh shocks emerge in global oil markets or domestic food supplies.
