Inflation has reduced. [Photo/kenyanwallstreet.com//inflation.]

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Reduction in the cost of food and non-alcoholic drinks in October contributed to the overall reduction of inflation to 5.72 percent compared to 7.06 percent registered in September.

In a statement, Kenya National Bureau of Statistics (KNBS) director general Zachary Mwangi said the decline of food and non-alcoholic drinks by 1.78 percent basis points resulted in the drop of overall inflation.

Mwangi said favorable weather conditions resulted in the reduction of cost of food. 

“As a result, the year on year food inflation dropped to 8.47 percent in October 2017,” he said. KNBS said that housing, water, electricity, gas and other fuels’ index increased by 0.47 percent. Meanwhile, transport, restaurant, and hotels indexes increased by 0.86 percent and 0.99 percent respectively during the period. The transport index recorded an increase of 0.86 percent over the same period, mainly on account of increase in fuel pump prices,'' said the statement.

Mwangi said the rising cost of housing and electricity also pushed for the increase in the cost of house rents, electricity and other cooking fuels used by most households in the country.

“The high cost of electricity was attributed to increasing in foreign exchange adjustment charges despite the fuel cost and other charges, remaining constant,” he said. This is the fourth time in a row that inflation has been on a decline.

In February, inflation was reported at 6.99 percent but continued to rise to 11.7 percent in May.

However, the cost of living started declining in June to 7.06 percent in September. 

Cytonn Investment Plc had projected that inflation would ease between 6.4 percent and 6.7 percent due to decline in food prices.