NAIROBI – Kenya’s annual inflation rate dropped for the third straight month, the national statistics bureau said today, raising hope among consumers of a drop in commodity prices.
The inflation rate, which measures the cost of living, fell from 18.31 percent in January to 16.69 percent in February. The National Bureau of Statistics (KNBS) said the Consumer Price Index, computed using the geometric mean approach decreased 0.06 percent from 130.82 in January to 130.76 in February.
“The food and non-alcoholic drinks’ index rose by 0.3 percent between January and February. This slight increase was a net effect of both rises and falls in the prices of a number of food products,” the KNBS said in a statement issued here. The bureau said the water, housing, electricity, gas and other fuel index rose 0.2 percent between January and February.
“Whereas the cost of electricity slightly surged upwards on account of small increases in the fuel cost adjustment charges, the average prices of kerosene and cooking gas recorded decreases of 3.80 and 5.65 percent respectively over the same period,” it said.
The Central Bank of Kenya’s monetary policy committee said it expected inflation to continue to ease in the coming months due to the current monetary policy stance, exchange rate stability, declining oil prices, and continued easing of demand pressures with the slowdown in private sector credit growth. (Xinhua)
