Transport, petrol costs push Kenya inflation up 5.8 pct

Kenya’s core inflation edged higher in November to 5.8% from October’s 5.5% due to an increase in the pump prices of petrol and public transport fares, data showed on Friday.

The Kenya National Bureau of Statistics said on a monthly basis, the consumer price index decreased by 0.18% from 192.60 in October 2018 to 192.25 in November 2018.

The year on year food inflation in November 2018 was 1.72%.
KNBS further said housing, water, electricity, gas, and other fuels’ Index, decreased by 1.24% in November 2018 compared to October 2018. “The drop was mainly due to lower costs in prices of electricity consumption.”
The Central Bank of Kenya (CBK) on Tuesday reiterated that the headline inflation will remain within the 2.50% – 7.50% target band.

“Inflation expectations remained well anchored within the target range,” Governor Patrick Njoroge said mainly due to expected lower food prices reflecting favorable weather conditions, the decline in international oil prices, and the recent downward revision in electricity tariffs.

The central bank further observed that the recent excise tax adjustment on voice calls and internet services is expected to have a marginal impact on inflation.