January inflation marginally decreases to 7.78%

By Ronald Owili

Inflation reduced marginally by 0.23 percent in January this year supported by a marginal ease in fuel prices and some foodstuff.

The rate of inflation has reduced from 8.01 percent to stand at 7.78 percent.

According to the Kenya National Bureau of Statistics, while you paid less for fuel such as kerosene, house rent has actually gone up this month.

KNBS however says the decrease in prices of some foodstuff was outweighed by the increase in prices of other foodstuff.

The rate of inflation in December 2015 exceeded the government’s medium term target of 7.5 percent. It was the month of high spending and increase in demand. While the rate of inflation stood at 8.01% during the month, there has been a marginal ease as the rate decreased to 7.78% in January this year.

The prices of tomatoes, onions and cabbages went up, but there was a decrease in the prices of irish potatoes and sukuma wiki. With the increase in excise duty which affected prices of alcoholic beverages, tobacco and narcotics, the food and non-alcoholic beverages index shot up 0.47%.

The reducing price of global crude has also seen average fuel prices of a litre of petrol, diesel, and Kerosene including LPG gas go down significantly, with kerosene losing an average of 29.19 shillings on a litre.

KNBS says consumers have paid more in January on average on house rent and charcoal, while there was no change in the average price of beer and cigarettes.

Commodities in this group went down 0.31%.

The transport index decreased 0.94% in January compared to the previous month mainly due to reduced cost of petrol and diesel. The price of books has also seen an increase in the education index.

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

 

  

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