ECONOMY

Drop in fuel prices eases inflation in January

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Kenya’s inflation fell in January as transport prices adjusted down.

According to the Kenya National Bureau of Statistics (KNBS), consumer price indices report for January 2019, inflation fell to 4.70 in January from 5.71 in December 2018.

KNBS’ report compiled during the second and third weeks of the month shows the price of a majority of foodstuffs dropped in January.

For instance, the average price of 1kg of sugar was retailing at Ksh122 down from Ksh125 in December 2018 representing a 2.56% drop.

The price of a 500ml packet of fresh milk however increased during the period to retail at an average price of Ksh61.12 up from Ksh60.74 in December 2018.

READ: WHY KRA WILL KEEP ON REPORTING SHORTFALLS IN REVENUE COLLECTION

Fare prices also fell during the month with the cost to travel 350km in a country bus being Ksh1,239 down from 1,245 in December representing a 0.48% change.

Traveling short distance in a matatu was also cheaper for commuters who had to fork out an average of Ksh49.82 down from Ksh50.08 they were paying in December, 2018

Diesel and petrol also retailed at a cheaper price during the month with the former selling for Ksh103.10 per litre down from Ksh111.89 while the latter retailed Ksh104.99 down from Ksh114.96.

SEE ALSO: HUAWEI Y7 PRIME TO RETAIL AT SH18,000 IN KENYA

“The  Transport  Index  decreased  by  1.40  per  cent,  mainly  due  to  decreases  in pump prices of petrol and diesel,” reads the report.

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