Consumers in Kenya will soon no longer have to pay the inflated rates for basic goods brought on by factors like inflation and the Russian invasion of Ukraine.
Basic commodity and other service prices are expected to fall in 2023, as noted by the World Bank in its study titled Commodity Markets Outlook published in October 2022.
Demand for some of the most important items may actually rise next year, despite the overall decrease. There may be insufficient supply beyond 2022 to lower the costs.
According to World Bank research, fuel prices have fallen from their post-pandemic highs as the expense of the conflict in Ukraine has taken attention away from the energy market.
However, fuel costs will fall slightly in 2023 due to varying trends and supply situations. We may expect additional stabilization of fuel costs in 2024 as a result of the global stabilization of currencies.
In 2023, the World Bank expects transportation and power costs to decrease. They claimed that the decrease in costs was due to cheaper gas and stable exchange rates.
In response to audits conducted by the Energy Petroleum and Regulatory Authority (EPRA), token prices have risen steadily over the last two months.
Researchers anticipate a 5% drop in agricultural prices in 2023, followed by a stabilization in 2024.
The improved global wheat harvest, steady rice market supply, and resumption of grain exports from Ukraine are all contributing factors to the predicted decrease in 2023.
Prices for natural gas and coal are predicted to decrease in 2023 and 2024, but they will still be much higher than they were before the epidemic.
Weaker demand for natural gas from consumers and enterprises cutting usage and switching to replacements is what will lead to cheaper pricing in the next year.
A rise in coal production is anticipated as well, thanks to rising output in China, India, and by seaborne exporters.
The food market, according to the research, will see growth. Due to the ongoing conflict in Ukraine and other natural disasters, food insecurity has risen dramatically, which the World Bank says is driving the rising demand.
The price of metals used in construction is expected to fall in the near future, the survey says. Nonetheless, the metal manufacturers are planning to raise production costs in response to the increased demand, which will have a knock-on effect on the final price.