By Antynet Ford
Kenya National Bureau of Statistics (KNBS) Director General Macdonald Obudho has dismissed claims that the headline inflation published at the end of every month does not reflect the real situation on the ground.
Obudho said the different classes in Kenya are affected differently when the three major classifications of the Consumer Price Indices experience a price change.
“Kenya has different classes and they are affected differently according to their different earnings. Those who earn very little or less spend their earnings on food items and when the prices of food go up, they will feel the effects of it because they’ll spend everything on food. When rent goes up, it affects those paying rent while when fuel prices hike it affects those buying it,” he said.
The DG explained that the numbers released in the headline Inflations are average and that at no point it can ever be uniform hence the usage of the Kenya Integrated Household survey to generate the Consumer Price Indices basket.
“The numbers being released are average but when it comes to particular groups if we were to rate Kenyans by income level then the CPI would be every individual. Some will feel the effect more than others and at no point, it will ever be uniform because of weight and where more resources are spent. CPI basket is derived from the Kenya Integrated Household Survey,” Obudho stated.
He explained that different products contribute differently to the CPI percentage with the three major categories of Food, fuel, and electricity taking up to 57 per cent.
“When you look at the components of CPI, there are very many products and they do contribute to the overall CPI differently in terms of weight, and because of that there are those that are major in terms of their contribution. Food items, fuel, and electricity contribute 57 per cent meaning any price changes have a big impact,” he added.
Last year, Kenyans have been complaining about the figures released by the statistics bureau on inflation saying it does not reflect on what is happening in reality.
A lot of the citizens have been explaining that even though the KNBS statistics indicate a lower rate of inflation, it is higher than the figures being provided.
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