Kenya’s retail inflation dropped marginally to 4.2 percent in September, government data showed on Wednesday compared to 4.36 percent the previous month.
Kenya National Bureau of Statistics (KNBS) shows that the September Consumer Price Index (CPI), a measure that examines the weighted average of prices of a basket of consumer goods and services, stood at 108.57.
“The month-on-month food and non-alcoholic drinks index rose by 0.15 percent, while the year-on-year food inflation rose by 5.18 percent mainly due to an increase in the price of peas, oranges, Irish potatoes, and cabbages by 13.69, 3.82, 2.74, and 1.72 percent respectively, among other food items,” said KNBS.
During the period, the Housing, water, electricity, gas, and other fuels index dropped by 0.05 percent in the same month mainly due to a drop in the cost of cooking gas and kerosene which dropped by 1.29 and 0.60 percent respectively.
The transport index decreased by 0.01 percent due to a drop in the pump prices of diesel, which outweighed the 1.40 percent increase in petrol prices.
The country’s inflation is expected to remain within its target range on the back of lower food prices, reduction in value-added tax, and weak consumer demand.
On Tuesday, the Central Bank retained the benchmark rate at 7.00 percent. This was majorly on account of anchored inflationary expectations with recent trends pointing to disinflation said Genghis Capital.
