Inflation eases to 5.53pc, transport costs remain high

Inflation eased for the fifth month in a row in January, helped by lower prices of key food items and fuel.

Data from the Kenya National Bureau of Statistics (KNBS) show that the cost of living measure stood at 5.53 per cent, down from 6.02 per cent last month.

The data shows that the prices of key food items such as maize flour, onions, potatoes and cabbages have been falling together with petroleum costs.

The transport index decreased by 1.39 per cent, according to KNBS.

The slide in crude oil prices following a glut in the international market has offered relief to consumers at the fuel pump.

The Energy Regulatory Commission mid-month slashed the cost of petrol by Sh9.13 per litre, diesel by Sh7.50 and kerosene by Sh5.78 per litre.

This saw the cost of fuel fall to below Sh100 a litre for the first time in four years.

Fuel has a significant impact on inflation in an economy, which depends heavily on diesel for transport, power generation and agriculture, while kerosene is used in many households for lighting and cooking.

Inflation has been dropping since last August when it a 25–month high of 8.36 per cent. The bureau data, however, shows that despite falling fuel prices matatu and bus fares have gone up compared to a similar period last year.