Kenya’s inflation rate dipped to a 14-year low of 2.7% in October, down from 3.6% in September, driven by a decline in food, electricity, and fuel prices, the statistics office announced on Thursday.
Key contributors to the deflationary trend include price reductions in essential commodities such as sugar, maize flour, wheat flour, kerosene, and petrol. While electricity prices saw modest increases, their impact on overall inflation was minimal.
“During the same period, however, prices of 50 kWh of electricity and 200 kWh of electricity increased by 0.3% and 0.2% respectively,” KNBS stated in its monthly inflation report.
However, the cost of living wasn’t entirely rosy. According to KNBS figures, mangoes experienced the most significant price increase over the past month, rising 9.9%. A kilogram of mangoes now retails at Ksh 134.97, up from Ksh 122.84 in September.
Cooking oil prices also increased by 1% in October, with a litre now costing an average of Ksh 332.37 compared to Ksh 329 in September. Additionally, the prices of tomatoes and carrots surged to Ksh 89.5 and Ksh 111 per kilogram, respectively.
“Prices of sugar, maize flour-sifted, and fortified maize flour decreased by 2.3, 1.8 and 1.7 per cent, respectively, between September 2024 and October 2024,” noted Abdulkadir Awes from the KNBS.
Finance Minister John Mbadi earlier this month suggested that the Central Bank of Kenya (CBK) should consider lowering its benchmark lending rate in response to the recent decline in inflation. The government aims to maintain an inflation rate between 2.5% and 7.5% over the medium term.
Inflation had previously fallen to 3.6% in September from 4.4% in August and 4.3% in July.
“Inflation is now firmly under control,” Mbadi stated during a Senate appearance. “We believe the central bank should initiate a reduction in the interest rate to encourage increased borrowing and job creation within the private sector.”
The Monetary Policy Committee (MPC) of the CBK recently lowered the Central Bank Rate (CBR) from 12.50% to 12% to stimulate economic growth, a move aligned with the decreasing inflation trend.