Overall inflation in December 2022 decreased to 9.1 per cent from 9.5 per cent in November driven mainly by low food prices.
The Monetary Committee Meeting held on Monday indicated that food inflation declined to 13.8 per cent in December from 15.4 per cent in November largely driven by a decrease in maize and milk prices.
"Additionally, prices of edible oils and wheat products declined due to lower global commodity prices with the easing of international supply chain disruptions," the committee said in a statement released by MPC chairperson Governor Patrick Njoroge.
The committee said that fuel inflation declined to 12.7 per cent in December from 13.8 per cent in November due to lower international prices.
It, however, said that fuel prices have remained elevated as a result of the withdrawal of subsidies and the increase of electricity prices occasioned by high tariffs.
"Overall inflation is expected to decline in the near term, also supported by the recently announced government measures to allow duty-free imports of key food items particularly maize, rice and sugar," Njoroge said.
The government is from February expected to start importing 900,000 metric tonnes of duty-free maize and 600,000 metric tonnes of rice.
Treasury CS Njuguna Ndungu said in a gazette notice in December that the importation will be between February 1 and August 6, 2023.
He further stated that 100,000 metric tonnes of duty-free brown or white sugar will be imported into the country not later than March 31.
A survey of the Agriculture sector indicates that prices of most food items are expected to decline or remain unchanged in February due to the expected imports and the ongoing harvest season that will provide a steady supply of mainly maize, wheat and rice.
"Nevertheless, respondents identified high input costs and unpredictable weather as the major factors constraining agricultural production," MPC said in its statement.
