El Nino rains assist inflation drop to 20-month low – Investorempires.com

The damaging El Nino rains have helped decelerate the rise in client costs to a 20-month low as costs of greens and livestock merchandise dropped, in keeping with knowledge from the Kenya Nationwide Bureau of Statistics (KNBS).

Inflation—a measure of enhance in client costs over a 12-month interval—has dropped to the degrees final seen in April 2022 when it was at 6.47 %.

Because of this inflation has for six months remained anchored inside the Central Financial institution of Kenya’s goal of between 2.5 % and seven.5 %.

Inflation breached the CBK’s higher restrict of seven.5 % for 12 months to June this 12 months, main the monetary regulator to aggressively attempt to stabilise value will increase by tightening the provision of cash.

In November, inflation was at 6.9 %, having risen from 6.8 % within the earlier month. 

“The overall year-on-year inflation rate as measured by the Consumer Price Index (CPI) was 6.6 percent, in December 2023,” mentioned MacDonald Obudho, the Director Normal for KNBS in an announcement.

“This was mainly driven by increases in prices of commodities under Transport (11.7 percent); Housing, Water, Electricity, Gas and other fuels (8.3 percent); and Food and Non-Alcoholic Beverages (7.7 percent) between December 2022 and December 2023,” added Mr Obudho within the assertion launched on Friday.

Nonetheless, the meals inflation index rose by 0.3 % within the assessment interval in comparison with a rise of 0.4 % noticed between October and November 2023. 

The worth of a two-kilogramme packet of sifted maize flour—vital for the preparation of ugali, which is a staple in most Kenyan households—dropped by 14.9 % to retail at a mean of Sh155.07 from Sh182.14 in December final 12 months.

Retail costs of fortified maize flour, free maize grain and free maize flour additionally dropped by 14.4 %, 9.1 % and eight % respectively, the most recent knowledge from the statistics workplace reveals.

“Prices of carrots, kale “sukuma wiki”, mutton/goat meat and beef with bones elevated by 14.5, 6.2, 5.1 and three.6 %, respectively between November 2023 and December 2023,” mentioned Mr Obudho.

Month-on-month, costs of most meals gadgets together with mangoes, Irish potatoes, sugar, tomatoes, wheat flour and milk dropped, pointing to the affect of the El Nino rains in December.

Nonetheless, Kenyans continued to grapple with larger costs of electrical energy and gasoline, although month-on-month, pump costs of petrol and diesel dropped by 2.3 and one % respectively. 

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