According to the Kenya National Bureau of Statistics (KNBS) the annual inflation rate, as measured by the Consumer Price Index (CPI), stood at 3.0 per cent in December 2024, marking a notable increase in the general price level compared to December 2023.
This rise in inflation was primarily fueled by higher costs in specific commodity categories, with food and non-alcoholic beverages recording a significant increase of 4.8 per cent and transport prices edging up by 0.2 per cent year-on-year.
However, not all sectors saw price hikes. In a statement Tuesday, KNBS pointed that, housing, water, electricity, gas, and other fuels category experienced a slight decline of 0.2 per cent during the same period, offsetting some of the upward pressure. These three divisions collectively represent over 57 per cent of the weights in the 13 broad categories tracked by the CPI.
The CPI serves as a key economic indicator, reflecting changes in the cost of purchasing a fixed basket of goods and services. The index compares current prices to a base period established in February 2019. Data for the CPI is gathered monthly from a representative sample of retail outlets and urban centers across the country, ensuring a broad and statistically reliable perspective on price movements.
In a month-on-month comparison, the overall index rose from 140.81 in November 2024 to 141.66 in December 2024, representing a modest increase of 0.6%. This data underscores the continued upward trend in prices, largely influenced by food and transport costs, despite some stability in other categories.
As inflation remains steady at 3 per cent, households are urged to brace for potential further fluctuations in prices, particularly in essential commodities.
The Transport Index increased by 1.8 per cent between November 2024 and December 2024, mainly due to a surge in fares of country bus/matatu in some routes by up to 50.0 per cent, in the month of December.
Prices of diesel and petrol, however, declined by 1.8 per cent and 2.4 per cent, respectively, between November 2024 and December 2024.
