Falling fuel costs lower inflation to 6.45pc

Kenya’s inflation dropped marginally in March to 6.45 per cent on lower petroleum prices.

This marks the third monthly drop in a row from 6.84 per cent in February, 7.78 per cent a month earlier and 8.01 per cent in December.

“The Transport index decreased by 0.34 per cent in March compared to the previous month mainly due to reduced costs of petrol and diesel,” the Kenya National Bureau of Statistics (KNBS) said.

The energy regulator cut petrol and diesel prices mid-March, offering motorists a relief in transport expenses.

READ: ERC signals high fuel costs as petrol, diesel prices drop

Food prices were, however, went up along with house rents, water services and kerosene which is used by poorer households for cooking and lighting.

Food takes up the largest share (36 per cent) of the basket of goods that is used to calculate inflation, followed by utilities.

Electricity prices remained unchanged.

The Central Bank of Kenya prefers inflation of between 2.5 per cent and 7.5 per cent.

READ: Half of Kenyans living ‘worst possible life ever’