Cheap food, transport cut inflation to 6-month low in February

Kenya’s inflation fell in February to 4.14 per cent, being the lowest in six months as the prices of food commodities and transport eased.

The Kenya National Bureau of Statistics (KNBS) showed that the drop from 4.7 percent year-on-year in January is the lowest since August last year when it closed at 4.04 per cent.

“The cost of several foodstuffs in February 2019 was much lower compared to the same period of the previous year-These lower prices contributed to a relatively low overall inflation in February 2019,” said KNBS.

Prices of commodities such as sifted maize floor, wheat flour, sugar, kerosene, petrol and diesel all eased during the month taking pressure off the food and transport indices.

Transport index decreased by 0.50 per cent, mainly as a result of significant decreases in pump prices of petrol and diesel. Energy Regulatory Commission cut the price of diesel, super petrol and kerosene by Sh6.28, Sh4.12 and Sh5.20 per litre respectively.

The statistic is based on data collected during the second and third weeks of the month, with prices being obtained from selected retail outlets in 25 data collection zones in Nairobi and in 13 other urban centers.

The drop marked a straight fall in three months, remaining within Central Bank of Kenya’s desired range of between 2.5 per cent and 7.5 per cent. The highest the rate has touched in the last 13 months is 5.71 per cent that came in December last year.