July inflation falls on lower food prices


The cost of living in July eased, with inflation falling to 6.62 per cent from 7.03 per cent a month earlier following reduction in prices of food items

The reduction comes on the back of a weakening shilling which was expected to lead to high cost of living.

The Food and Non-Alcoholic Drinks Index declined by 0.6 per cent bringing down the overall cost of food. This segment accounts for more than half of the weight of the index, with notable price decreases seen in maize, potatoes and cabbages.

According to the Kenya National Bureau of Statistics (KNBS), Food and Non-Alcoholic Drinks’ Index decreased by 0.6 per cent in the period between June and July 2015.


“This resulted from observed decreases in prices of several food items outweighing the increases,” KNBS director general Zachary Mwangi said in the update.

Housing, Water and Electricity, Gas and Other Fuels’ Index increased by 0.76 per cent between June and July. This was mainly due to cost increases in respect of common cooking fuels and other household utilities, KNBS said.

Analysts had expected inflation to reach 9 per cent this year following a weakening of the Kenya shilling by about 12 per cent this year.