Annual inflation rises to 5.78pc in January

Annual inflation rises to 5.78pc in January

January 31, 2020 0 By mykenyancareers
grocery food kiosk - Annual inflation rises to 5.78pc in January
Month on month inflation rose by 0.31 percent from 204.77 in December 2019 to 205.40 in January/FILE

NAIROBI, Kenya, Nov 29 – Kenya’s year-on-year inflation in January rose to 5.78 compared to 5.82 percent registered last month, as the price of food and alcoholic drinks increased.

According to the Kenya National Bureau of Statistics, month on month inflation rose by 0.31 percent from 204.77 in December 2019 to 205.40 in January.

During the period under review, housing, water, electricity, gas, and other fuels’ index increased by 0.45 percent.

In the food basket, the price of onions, spinach and carrots increased by 5.25 percent, 4.38 percent and 3.22 percent.

However, prices of green grams and cooking fat dropped by 0.99 percent and 0.36 percent respectively.

Increase in pump prices of diesel and petrol by the Energy and Petroleum Regulatory Authority (EPRA) contributed to transport’s index increase which rose by 4.1 percent.

Early this month, EPRA revised the prices of fuel upwards with the price of a litre of Super petrol and diesel rising by Sh0.70 and Sh0.54 respectively.

This is even Central bank of Kenya cut the benchmark lending rate to 8.25 percent, saying inflation expectations were within the target range and an economy operating below its potential.

The Monetary Policy Committee had held the rate at 9.0 percent for seven consecutive times since the end of July 2018 before two recent cuts.