If latest statistics from Kenya National Bureau of Statistics (KNBS) are anything to go by, August was a friendly month for Kenya. The Consumer Price Indices (CPI), measure of changes in the price level of consumer goods and services purchased by households, decreased by 0.31 per cent to stand at 131.51 in August 2012 from 131.92 per cent in July 2012.

August 2012 saw the Food and Non Alcoholic drinks index decrease by 1.09 per cent. This drop is attributed to decrease in the prices of a number of food products. The prices of tomatoes (-7.4%), milk(-3.3%), potatoes(-5.3%), maize flour(-2.4%), cabbages(-6.9%), carrots(-7.6), spinach(-5.2%) and onions (-4.1%) all declined between July and August 2012.

Housing, Water, Electricity, Gas and Other fuels’ index went up by 0.80 per cent between July and August 2012. The increase in this index was attributed to a significant rise in costs of electricity, house rents and some cooking fuels, this coming despite fall in the average prices of Kerosene and cooking gas.

As we predicted, the Transport index went down by 0.82 per cent between July 2012 and August 2012 mainly due to falls in matatu, bus and taxi fares that reflect the continued trend in reductions of petrol and diesel prices.