Kenya recorded an inflation rate of 5.7% for the month of December, following lower food and fuel prices. This is a drop November’s 5.8%, largely tamed by government effort to subsidize fuel prices for the month.
The food and non-alcoholic index for the month rose by 9% YoY, compared to a growth of 9.9% in November, driven by prices of onions and bread. Similarly, the transport index rose by 8.1% for December matching its November growth after EPRA held fuel prices constant for the two months.
While Kenyans experienced a slight respite for the month, there are concerns on the weakening shilling and rising oil prices, which could pump up inflation should the government cut fuel subsidies that have retained fuel prices despite increases in landing costs. The average landed cost of super petrol increased by 3.59% to US$ 627.80 per litre in November while that of diesel increased by 6.98% to US$ 600.22 per cubic litre. Kerosene increased by 15.78% to US$ 604.43 per cubic litre. Nevertheless, the price of a litre of super petrol remained at KSh 129.72, diesel at KSh 110.60 per litre and KSh 103.54 per litre of kerosene for December.