Inflation Eases Slightly in November Despite High Commodity Prices

In November, Kenya’s living cost slightly eased, surprising as key commodity prices remain high.

The National Bureau of Statistics (KNBS) reported a slight decrease in inflation to 6.8% compared to the previous month’s 6.9%.

KNBS Director General Macdonald Obudho attributed inflation rates to price fluctuations in food, energy, and transportation, which account for 57% of family budgets.

On a month-on-month basis, inflation stood at 0.2 percent in November, down from one percent in October.

The year-on-year inflation was primarily influenced by increases in the prices of several key areas.

“The housing, water, electricity, gas and other fuels’ index increased by 0.2% between October 2023 and November 2023, mainly on account of a 1.1% rise in the prices of both gas and cement,” Obudho said in a statement.

There was a 13.6 percent increase in transportation, an 8.5% increase in housing, water, electricity, gas, and other fuels, and a 7.6% increase in food and nonalcoholic beverages.

Despite the reduction in inflation, the high prices of essential commodities persist, significantly affecting the cost of living.

The slight decrease in inflation provides hope, but high commodity prices continue to pose a significant challenge.