If the recently released Consumer Price Index (CPI) by Kenya National Bureau of Statistics (KNBS) is anything to go by, July was an economically friendly month as compared to June 2012. The CPI decreased by 0.85 per cent from 133.06 in June to 131.92 in July 2012.

A Consumer Price Index (CPI) is a measure of change in the price level of consumer goods and services purchased by households.

As posted by KNBS, the Food and Non Alcoholic drinks’ index decreased by 1.88 per cent between June and July 2012. This was attributed to continued fall in prices of several food products such as sukuma wiki, milk, potatoes, tomatoes, cabbages, onions, beans, green maize and spinach in July compared to June 2012.

The Housing, Water, Electricity, Gas and Other fuels’ index decreased by 0.22 per cent between June and July 2012 mainly on account of reduced costs of electricity, kerosene and cooking gas. As illustrated in the KNBS CPI report, the average cost of consuming 50 units of electricity declined from KES 600.00 in June to KES 546.50 in July 2012. This decrease was as a result of reduction in both fuel cost adjustment and foreign exchanges per KWhr in July compared to June 2012.

There was also a 1.35 per cent drop in the transport index, a drop attributed to lower costs of petrol and diesel.

July 2012 also saw inflation drop a 17 month low to stand at 7.7. What did your July look like?