Kenya’s inflation slowed marginally by ten basis points in January, down to nine per cent.
This is the third consecutive month that Kenya’s inflation has fallen. The levels hit 9.6 per cent in October 2022, the highest level ever experienced since May 2017.
“The overall year-on-year inflation rate as measured by the Consumer Price Index (CPI) was 9.0 per cent in January 2023. The CPI increased by 0.2 per cent from an index of 128.99 in December 2022 to 129.29 in January 2023,” KNBS said in its monthly review.
Although January rates have fallen slightly, they remain above the government’s preferred range of 2.5-7.5 per cent.
“The rise in inflation was primarily due to an increase in prices of commodities under transport and (13.1 per cent), food and non-alcoholic beverages (12.8 per cent), housing water, electricity, gas and other fuels (7.3 per cent), between January 2022 and January 2023.”
These three divisions account for over 57 per cent of the weights of the thirteen broad categories. Prices of commodities under furnishings, household equipment and routine household maintenance recorded a 9.3 per cent increase over the period,” reads the KNBS report in part.
Compared to December 2022, when the CPI index stood at 128.99 per cent, in January 2023 CPI index increased by 0.2 per cent to hit 129.29 per cent.
Prices of mangoes, potatoes (Irish) and cowpeas dropped by 4.7, 3.8 and 3.6 per cent, respectively, while those of tomatoes, beans and beef with bones increased by 8.1, 1.7 and 0.8 per cent, respectively.
“With headline inflation expected to remain sticky above the 7.50% target range in the first half of this year, the central bank has scoped to hike its policy rate by at least 25.00bps in its next meeting in March. At present, the policy rate (CBR) stands at 8.75%,” NCBA Market analysts said in their inflation reaction.
