Kenya's overall inflation rate drops
30 September 2014, 11:04
Nairobi - Kenya's overall
monthly inflation slowed down to 6.6 percent in September from 8.36
percent in the previous month due to falls in energy prices, the
statistics bureau said on Monday.
The Kenya National Bureau of Statistics (KNBS) said the Consumer
Price Index (CPI) computed using the geometric mean approach rose by
0.15 percent from 152.02 in August to 152.24 in September.
During the review period, Food and Non-Alcoholic Drinks' Index rose
by 0.15 percent, the KNBS said in a statement. "Between August and
September, Food and Non Alcoholic Drinks' Index increased by 0.58
percent. The aggregate rise resulted from observed increases in the
prices of several food commodities outweighing notable falls in the
prices of others," the bureau said.
Analysts said the decline in inflation and the weakening of the local
currency seen over the past two weeks might result in reduced lending
rates as well as reduce the cost of living.
"Over the same period, Housing, Water, Electricity, Gas and Other
Fuels' Index decreased by 0.52 percent. This decline was attributed to
notable falls in cost of kerosene and electricity," it said.
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According to the bureau, electricity prices were lower in September
compared with August due to reduction in fuel cost and Forex adjustment
During the same review period, the Transport Index decreased by 0.41
percent mainly due to reduction of pump prices of petrol and diesel in
September compared to August.
There has been a steep rise in prices of electricity in the East
African nation in the past months, in turn affecting the manufacturing
But the latest review which has seen the prices of electricity fall
will be welcomed by the industrialists who are consuming 15, 000
kilowatts per hour of power.
Manufacturers have complained before that the high prices are
lowering their competitiveness in the region, besides pushing up the
cost of goods.
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