CPI AND INFLATION RATES FOR THE MONTH OF JULY 2004

Overall Kenya CPI declined marginally by 0.6 per cent from 163.1 points in June 2004 to 162.1 points in July 2004. In July 2004, month-on-month overall inflation rate was 8.5 per cent while month-on-month underlying inflation rate was 6.3 per cent.

Table 1 shows percentage changes in overall (Kenya) indices in July 2004 compared to June 2004 (previous month).

Table 1: One Month Change in Prices

Broad Item Group

% Change on Previous month

Food and Non-Alcoholic Drink

1.8

Alcohol & Tobacco

0.1

Clothing & Footwear

2.4

Housing Costs

1.1

Fuel & Power

1.5

Household Goods & Services

1.0

Medical Goods and Services

0.3

Transport & Communication

0.3

Recreation & Education

0.8

Personal Goods

1.8

Food and non-alcoholic drink index dropped by 1.1 per cent in July 2004 compared to June 2004. This was as a result of decline in prices of sugar, English potatoes, cabbages, onions and tomatoes. However, the prices of maize grain and Kales (sukuma wiki) increased in July 2004 from the June 2004 level.

Fuel and Power index dropped from 187.8 points in June 2004 to 186.8 points in July 2004 a fall of 0.6 per cent due to decline in the prices of paraffin and cooking gas.

There were minimal changes in other commodities in the Consumer Price Indices basket.

Table 2 shows a set of selected items in the consumer basket. Analysis shows that prices of the items have risen in July 2004 compared to July 2003.

Table 2: Selected items and their Prices

Commodity
Unit
Price, July 2003
Price, July 2003
Percentage rise
Wheat floor
2 kg.
64.25
82.09
27.8
Sugar
1 kg.
48.90
53.41
9.2
Cooking fat
500 g.
50.94
57.11
12.1
Matatu fare
Short distance
15.30
21.75
42.2
Diesel
1 litre
42.85
49.32
15.1
Petrol (Super)
1 litre
57.62
64.00
11.1

Source: Kenya National Bureau of Statistics