Tough Times Ahead: Price of Basic Goods Rise
Written by RadioVuna on April 27, 2022
As a result of rising pricing for basic consumer goods, Kenyans have had to reduce their shopping frequency.
According to Kantar, a London-based data analytics and brand consultancy organization, the frequency of shopping will drop by 4% in 2021, according to a recent poll on customer behavior connected to fast moving consumer goods (FMCG).
There was a 1% decrease in the volume of purchases per trip for FMCG items in the same quarter.
On the other hand, expenditure per trip and the average price per item purchased have increased by 4% and 5%, respectively, to reflect the rising cost of products and services throughout the course of 2013.
According to KNBS statistics, the consumer price index went from 107.2 points in February 2020 to 118.2 points in December, reflecting an increase in the cost of essential items throughout that time period.
At 9.1, 8.1 and 6.3 per cent per year, food/nonalcoholic drinks, transportation, and energy prices grew the most.
Deodorants, toothpaste, and lotions were among the items Kenyans slashed their travels to buy at the highest rate of 10% throughout the time.
A 5% drop in food shopping frequency was recorded between 2020 and 2021, with the most often purchased food products being sugar, pastry, flour, and morning cereals.
There was a 4% decrease in the number of visits to the store to buy things like laundry detergent and toilet cleaning.
Beverage purchases, including coffee, water, tea and juices were stable in 2021, defying the current trend.
In the time since the poll was conducted, the average price of food has increased by 19%.
The study examines the purchasing habits of seven million households across 45 different categories of fast moving consumer goods.
As a result of the ongoing Russian-Ukrainian conflict and rising global commodity prices, the cost of living and consumer prices will continue to grow even faster in 2022.
Inflation in March, according to KNBS data, was 5.6%, the highest level since December of previous year.
As a result of rising gasoline costs this month, Thursday’s inflation report is projected to be higher than the previous one.
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