Kenya’s overall inflation fell to 4.07% a 100 basis points decline from the inflation rate recorded in December.
The Kenyan National Bureau of Statistics attributed this to decreased transport cost in the month.
“The CPI increased by 035% from 193.51 in December 2018 to 194.18 in January 2019. The overall year on year inflation in January 2019 stood at 4.70%,” said the KNBS in its January inflation report.
The transport index decreased by 1.40% mainly due to decreases in pump prices of petrol and diesel.
CBA analysts said, “This is the slowest increase in consumer prices since August 2018, when it was 4.04%.”
Food inflation declined to 1.6% from 2.5% in December with a significant drop in maize prices. Loose maize grain, sifted maize flour and loose maize flour all declined 40.58%, 29.04%, and 32.58% respectively. “The decline was connected to above-average food production in the last quarter of 2018 and the consistent import of foodstuff.”
“The waning inflation pressure strengthens prospects of sustained monetary accommodation although the scope for further easing remains slim,” said CBA.
“Going forward, we expect inflation to remain within CBK target with food inflation moderating on excess supply while the current stable oil prices will steady fuel inflation,” Genghis Capital.