Kenya's inflation eases to 6.8% in February on low fuel prices

Nairobi - Kenya’s inflation eased in February to a level below the government’s preferred ceiling helped by dropping pump prices and lower costs of several food items. Official data shows that inflation dropped to 6.84 per cent from 7.78 per cent in January and 8.01 per cent a month earlier.

Monday, February 29, 2016

Nairobi - Kenya’s inflation eased in February to a level below the government’s preferred ceiling helped by dropping pump prices and lower costs of several food items. Official data shows that inflation dropped to 6.84 per cent from 7.78 per cent in January and 8.01 per cent a month earlier. The Central Bank of Kenya prefers inflation of between 2.5 per cent and 7.5 per cent. Cooking gas prices dropped by Sh25 in the review period to Sh2,318 for 13-kg cylinder, easing pressure on households budgets.

Kitchen costs were made more affordable by lower prices of tomatoes, onions and potatoes, according to Kenya National Bureau of Statistics (KNBS) data.

Food takes up the largest share (36 per cent) of the basket of goods that is used to calculate inflation, followed by utilities.

Lower petroleum costs also helped to reduce transport costs following cuts by the energy regulator mid-February in response to tanking global oil prices.

Electricity bills, however, remained unchanged in the review period.

Homes that consumed 200 kilowatts hours (units) continued to pay Sh3,398 while those using 50 units paid Sh534.