Inflation rate drops to 4.7pc in January

Written By: Regina Manyara
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The government will continue monitoring prices of Kenya’s main staple to ensure that unscrupulous business people do not fleece the public.
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Lower pump prices coupled with easing prices of food stuff such maize grain, sifted flour, sugar and beans has seen the rate of inflation fall to 4.7 percent in January compared to 5.71 percent registered  in December.

Figures released Thursday by Kenya National Bureau of Statistics indicate that a drop in petrol and diesel prices lowered transport index by 1.4 percent this month.

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Overall Year on year inflation in January slowed to 4.70 percent from 4.83% registered in a similar period last year.

Between December 2018 and January 2019, Food and Non Alcoholic drinks index increased by 0.78%.

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KNBS Consumer Price Index indicates the prices of Maize grain decreased by 40% from Kshs 59.90 per kilo gram in January 2018 to Kshs 35.5 in 2019, while sifted maize flour, sugar, and beans decreased by 29.04, 7.69, and 6.08% respectively pushing inflation to 1.62%.

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Housing, Water, Electricity, and Gas index increased by 0.20% as a result of higher costs of house rents and cooking fuels.

Prices for the consumption of 50KWh of electricity increased by 1.68% from 757 shilling in December to 770.48 shillings in January, while the consumption of 220Kwh increased by 1.15% to 4,485 shillings.

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Monday, the Central Bank of Kenya retained the Central Bank Rate at 9.00 percent since end of July last year informed by inflation expectations remaining within the target range and that the economy was operating close to its potential.

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