Kenya’s February inflation rate hits 23-month low

Kenya’s inflation for February hit a 23-month low of 6,3 percent and according to the Kenya National Bureau of Statistics (KNBS), the drop in inflation is a result of the drop in the cost of essential foods relieving strain on most low-income households. 

However, energy prices, specifically fuel and electricity, saw an increase.

According to the Kenyans Business news publication, BusinessDaily, household spending on school fees climbed following the December holidays, which followed a 6,9 percent increase in consumer prices for the 12 months leading up to January.

“The overall year-on-year inflation rate as measured by the Consumer Price Index (CPI) was 6,3 percent, in February 2024,” said Benjamin Avusevwa on behalf of KNBS Director General.

Kenya’s inflation dropped to 6,3 percent in February, which remains within the Central Bank of Kenya (CBK) band of between 2,5 percent and 7,5 percent, representing its lowest level since March 2022, which had an inflation rate of 5,56 percent.

While gasoline prices remained a thorn in the side of Kenyans, which increased transportation expenses by an average of 10,8 percent in the review month, prices of several food goods fell in February compared to January, slowing the inflation rate.

“Prices of tomatoes, sugar, maize, grain-lose, and maize flour-lose dropped by 5.7, 4.6, 3.4, and 1,6 percent, respectively, between January and February 2024,” said Mr Avusevwa.

Food inflation in the country dipped while energy including fuel and electricity remained high. This is a result of the country’s deteriorating currency, which pushed up the price of refined petroleum products.  – Business Insider Africa

BusinessDaily’s report noted that the CBK’s Monetary Policy Committee (MPC) hiked its benchmark lending rate to a 12-year high of 13 percent in the first week of February, citing the weak shilling and fears that inflation would stay trapped in the upper bound of five to 7,5 percent. Business Insider Africa

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