Kenya National Bureau of Statistics (KNBS) is expected to release Consumer Price Indeces (CPI) and rates of inflation for August 2012, today, 31 August 2012.

Fuel price dropped in August as compared to July.  The drop in Diesel and super petrol prices could result in a drop in the transport index. The marginal drop in Kerosene price could also result in a drop in the Housing, water, Electricity, Gas and other fuel’s index, though this drop could be hindered by the increase in electricity bills in August 2012. This could result in an increase or decrease in the CPI which altimately has an effect in the overall inflation rate.

Inflation rates currently stand at 7.74 per cent; this mainly due to a 0.85 per cent decrease in the CPI in July 2012 as compared to June 2012.

In July 2012, the Food and Non Alcoholic drinks’ index decreased by 1.88 per cent between June and July, mainly due to continued falls in prices of several food products.

The Housing, Water, Electricity, Gas and Other fuel’s index decreased by 0.22 per cent, between June and July 2012, mainly on the account of reduced costs of electricity, Kerosene and cooking gas.

Similarly, over the same period, the Transport index decreased by 1.35 per cent due to lower costs of petrol and diesel.

We will keep you posted as soon as KNBS release August CPI and rates of inflation.