KENYA’S INFLATION RATE DIPS SLIGHTLY TO 7.78 PCT INJANUARY

By Ronald Owili

NAIROBI, Kenya’s inflation rate dipped marginally by 0.23 per cent in January this year supported by a marginal easing of fuel prices and of some food items.

The rate of inflation in January eased to 7.78 per cent from 8.01 per cent the previous month, according to the Kenya National Bureau of Statistics (KNBS).

It reported here Sunday that although Kenyans paid less for fuel such as kerosene in January, house rent had gone up during the month.

However, the easing of prices of some foodstuffs was outweighed by the increase in prices of other food items, the KNBS said.

The rate of inflation in December 2015 exceeded the government’s medium-term target of 7.5 pe rcent. It was the month of high spending and increase in demand. However, the inflation rate eased marginally in January.

The downtrend in the price of crude oil has also seen average fuel prices dropping in Kenya but the KNBS said consumers paid more in January on average on house rent and charcoal, while there was no change in the average price of beer and cigarettes.

Overall consumer price index increased by 0.39 per cent from 164.72 in December last year to 165.37 in January 2016.

Source: KBC