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Inflation declines in May

15 June 2015, 13:53 Dan Odhiambo

Nairobi - Inflation declined in May albeit marginally. Annual headline inflation declined marginally to 6.87% from 7.08% the previous month.

Core inflation rose from 3.16% in April to 4.15% in May. This increase largely reflects inflationary pressure on account of a weakening Shilling against the US Dollar.

The m-o-m food inflation declined from 3.92% to 1.06% . The decline was as a result of lower seasonal food prices like Kales and cabbages mainly due to improved rainfall.

Transport Index declined by 1.34% as a result of the decline in bus fares and other goods and services within the transport sector.

Growth in private sector credit however, was 19.89% against a target of 19.43% which was slightly above the non-inflationary target.

Improving weather conditions and low fuel prices are expected to keep inflation within the Government’s long term target of 5%+/-2.5%.

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