Kenya’s annual inflation drops to 3.83%

Nairobi, Kenya (PANA) – Kenya’s year-on-year inflation dropped to 3.83% in February 2018 from 4.7% in January, the Kenya National Bureau of Statistics (KNBS) said on Wednesday.

The monthly average inflation also dropped to 4.46%, below the Central Bank of Kenya’s (CBK) target of 5%, supported by a small increment in the cost of food.

According to KNBS, the food index, measured from statistics gathered from 25 urban centres, increased by 2.22% in February, compared to 1.69% in December, a situation the statistics body attributed to the drought in the East African nation.

The monthly average food inflation stood at 3.83% while the average cost of alcoholic drinks rose to 3.81%. The cost of transport rose by 6.95%. February saw a hike in the cost of petroleum products and pump prices.

Apart from the food and alcoholic drinks, the overall spending basket also showed the cost of education also rising by 5.08% in February, the bureau said.

-0- PANA AO/AR 28Feb2018