Sharp Daily
No Result
View All Result
Saturday, July 19, 2025
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home News

Why your wallet isn’t celebrating despite inflation rate drop

Editor SharpDaily by Editor SharpDaily
November 16, 2023
in News
Reading Time: 2 mins read

In recent months, inflation rates have experienced declines, particularly on a month-to-month basis (m/m).

The year commenced with an inflation rate of 9.0%, and in the latest month, this figure has decreased to 6.9%. A prevalent question, posed by numerous individuals both online and offline, is why, despite the drop in inflation rates, the prices of goods remain higher than those observed in January.

Let’s delve into the reasons behind your favorite snacks and daily essentials not hosting a price-drop celebration. A decrease in inflation rates does not translate to a reduction in absolute prices; rather, it indicates a moderation in the pace of price increases. This is akin to a vehicle slowing down on a highway—it is still advancing, albeit at a decelerated rate.

Inflation serves as the Richter scale for prices, measuring the overall cost of goods. Thus, if the inflation rate experiences a decline, it signifies that prices are still ascending, albeit at a slower pace. Your everyday essentials are still becoming more expensive, just not as rapidly.

RELATEDPOSTS

Navigating inflation and currency risks in African investments

June 10, 2025

Balancing between inflation and unemployment

May 5, 2025

For the average person, this situation carries a dual implication. On a positive note, it suggests that prices are not increasing as swiftly. Conversely, it serves as a reminder that prices are still on the rise. Understanding this information is crucial for prudent financial management.

While there may not be an imminent need to brace for a sudden surge in expenses when inflation rates decrease, recognizing the gradual rise in costs enables more effective financial planning. It’s about preparing for the steady increase in the cost of living.

Moreover, prudent debt management becomes a strategic consideration. Inflation can impact the real cost of debt. During periods of lower inflation, the influence of interest rates on loans may be less severe. However, it remains essential to stay vigilant regarding overall economic conditions, as unforeseen shifts can influence interest rates and the cost of servicing debts.

In essence, a nuanced understanding of inflation rates equips individuals with the tools to navigate their financial landscape more effectively. It’s not solely about reacting to immediate changes; it’s about proactively making choices aligned with economic realities, fostering improved financial well-being in both the short and long term.

Previous Post

Tech leaders to converge in Diani for CIO100 awards

Next Post

KDIC disburses KES 93 billion to depositors of failed banks

Editor SharpDaily

Editor SharpDaily

The latest in business, real estate, education, investments, tech and entrepreneurship, brought to you daily. Reach us through thesharpdaily@gmail.com

Related Posts

Business

Del Monte foods files for bankruptcy in USA

July 3, 2025
News

Private vs Public Pension Funds in Kenya

June 30, 2025
Investments

Investor shift to long term bonds drives oversubscription in CBK’s reopened auction

June 19, 2025
News

The real price of Israel – Iran Conflict for Kenya.

June 19, 2025
Economy

Resilient but strained: Kenyan firms speak out in May 2025 CEO survey.

June 19, 2025
News

Co-op Bank posts KES 6.9 billion profit in Q1’2025

May 16, 2025

LATEST STORIES

Invest in stability: introducing the Cytonn USD money market fund

July 18, 2025

The Importance of Asset Diversification on Kenyan Pension Funds

July 18, 2025

Park your money where it grows: Why more Kenyans are turning to Cytonn Money Market Fund

July 16, 2025

Strategies to boost alcohol and tobacco tax revenues

July 16, 2025

Kenya’s reactive monetary policy

July 16, 2025

Why Employers Should Prioritize Pensions Over One-Time Gratuity Payments

July 10, 2025
Business and Finance Concept - Coin, Currency, Financial Item, Graph,

Opinion: Why lower taxes may be Kenya’s only escape route

July 10, 2025

Nvidia becomes the first company globally to hit USD 4.0 trillion market value

July 10, 2025
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024