Inflation up to 5.6pc from 5.5pc in October


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High cost of transport led to a slight increase in the cost of living in November.

Overall inflation for November jumped to 5.6% up from 5.5% registered in October this year.

The Kenya National Bureau of Statistics says transport index increased by 0.81% in the month.

The Kenya National Bureau of Standards attributes the rise to an increase in Transport index of 0.81% on account of the increase in the pump prices of petrol and public transport fares.

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Overall inflation in November peaked by 0.05% to hit 5.58% up from 5.53% registered in October.

Food and Non Alcoholic drinks index decreased by 0.15% due to the decrease in the prices of some foodstuffs which outweighed increases recorded in other food stuffs.

For instance the KNBS Consumer Price Index indicates, the prices of sugar decreased by 2.2% while that of cabbages decreased by 4.4%.

This saw food inflation in November registered at 1.72%.

Housing, Water, Electricity, Gas and other fuels index decreased by 1.24% in November compared to October, the drop was mainly due to lower costs in prices of electricity, the prices for the consumption of 50KWh of electricity declined by 31.4% from 1,105 shilling in October to 758 shillings in November.

Tuesday, the Central Bank of Kenya retained the Central Bank Rate at 9.00 percent for the second time in a row.

This was informed by inflation expectations remaining within the target range and that the economy was operating close to its potential.

CBK Governor Dr. Patrick Njoroge who chairs the monetary policy committee says the decision to retain the benchmark rate at 9 percent was informed by the inflation rate that has remained within policy target.

GDP was placed by the regulator at 6.0 percent in the first half of 2018 compared to 4.7 percent in the first half of 2017.

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By Kenyan Digest

The Kenyan Digest Team