Inflation graph.[photo/innovativewealth.com]The cost of living eased to the lowest level in more than four years driven by a slower rise in food and non-alcoholic drink prices. According to data released by Kenya National Bureau of Statistics (KNBS), inflation dipped to 4.73 percent year-on-year from 5.72 percent in October due to favorable weather. The last time inflation hovered around this range was in February 2013 when it touched 4.45 percent.
The Government targets inflation to range from 2.5 percent on either side of five percent. The consumer price index (CPI) the weighted average of prices of a basket of consumer goods and services declined by 0.23 percent from 182.50 registered in October to 182.08 last month.
KNBS director general Zachary Mwangi said between October and November, food and non-alcoholic drinks’ index declined by 1.33 percent due to favorable weather conditions which led to falling in the cost of several food items.
Mwangi said the rising cost of housing and electricity pushed for the increase in the cost of house rents, electricity and other cooking fuels used by most households in the country which increased by 1.74 percent. “The high cost of electricity was attributed to increases in fuel cost adjustment charges which outweighed the decreases in foreign exchange adjustment charges per kWh,” said Mwangi.
However, the transport index recorded an increase of 0.58 percent over the same period, mainly on account of increase in pump prices of both petrol and diesel. In February inflation was reported to be 6.99 percent but continued to rise until it hit 11.7 percent in May. However, the cost of living started declining in June until it hit 7.06 percent in September.