Fuel price cut set to reduce inflation

In the inflation basket, petroleum prices have a direct effect on the transport and utility baskets. FILE PHOTO | NMG

Analysts have tipped inflation to fall below the preferred central bank range following the significant fall in fuel prices this month.

The Energy Regulatory Commission (ERC) cut the Nairobi price of a litre of petrol by Sh9.33 to Sh104.21 in the mid-January review Monday, while a litre of diesel is now retailing Sh10.04 lower at Sh102.24.

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Note: The results are not exact but very close to the actual.