Nairobi — The Kenya National Bureau of Statistics has reported a slight decline in the country's inflation rate, which stood at 6.6% year-on-year in December, down from 6.8% in November.

According to the statistics office, the main contributors to this decline were price increases in transport, housing and utilities, and food.

The agency explained that the rise in inflation was primarily due to increases in the prices of commodities in various sectors, including Transport (11.7%); Housing, Water, Electricity, Gas, and Other Fuels (8.3%); and Food and Non-alcoholic Beverages (7.7%) between December 2022 and December 2023.

The Housing, Water, Electricity, Gas, and other Fuels' Index saw a 0.4% increase between November 2023 and December 2023, driven by rising electricity prices for 200 kWh and 50 kWh by 1.0% and 1.2%, respectively. However, the price of a litre of Kerosene dropped by 2.0% during the same period.

Despite a decrease in petrol and diesel prices by 2.3% and 1.0%, respectively, between November 2023 and December 2023, the Transport Index still saw a 0.5% increase during that time. This was mainly attributed to higher country bus fares on certain routes.

These three divisions collectively account for over 57% of the weights of the 13 broad categories used to calculate inflation.

The Consumer Price Index (CPI) and inflation rates are generated through monthly surveys of retail prices, targeting a representative basket of household consumption goods and services. This data is collected during the second and third weeks of each month from a sample of outlets located in 50 data collection zones across the country.