Kenya’s inflation dropped to a six month low in February to 4.14 per cent compared to 4.04 per cent recorded in August last year.
Kenya National Bureau of Statistics attributed the drop to reduced fuel prices that led to a cut in transport costs resulting in low food prices.
Mid last month, the Energy Regulatory Commission (ERC) reduced the price of petrol, diesel and kerosene by Sh4.12, Sh6.28, and Sh5.20 per litre respectively.
Prior to the drop in fuel prices, data released by KNBS shows that inflation rose by 66 basis points to 4.7 per cent between August and January.
Prices of commodities such as sifted maize flour, wheat flour, sugar, kerosene, petrol and diesel all eased in February relieving pressure off food and transport indices.
On the other hand, a significant decrease in pump prices since December saw the index on transport drop by 0.50 per cent.
“The cost of several foodstuffs in February 2019 was much lower compared to the same period of the previous year. These lower prices contributed to a relatively low overall inflation in February 2019,” said KNBS.
This is the third time inflation is dropping since December when it dropped by a whole figure of 5.7 to 4.7 per cent in January.
Inflation in Kenya averaged 9.64 per cent from 2005 until 2019, reaching an all-time high of 31.50 per cent in May of 2008 and a record low of 3.18 per cent in October of 2010.