Kenya’s May inflation dropped to a 3 year low of 5% compared to April’s 5.27% despite increases in the price of food and petroleum as electricity bills remained unchanged. The Consumer Price Index(CPI) increased by 0.68% to an all time high of 167.99% from 167.07% posted in April 2016 as seen in the charts below;
Inflation
Consumer Price Index(CPI)
Between April and May 2016, Food and Non-Alcoholic Drinks’ Index increased by 0.82 per cent as a result of notable increases in prices of several food items which outweighed the decreases. Over the same review period, Housing, Water, Electricity, Gas and Other Fuels’ Index, increased by 0.09 per cent. This small aggregate increase was mainly as a result of price increases in respect of kerosene and other cooking fuels.
However, the cost of electricity remained at the same level as in the previous four months of January to April 2016. The Transport Index increased by 0.55 per cent in May 2016 compared to the previous month mainly due to higher costs of both petrol and diesel.
May’s 5% inflation falls within Central Bank of Kenya’s preferred range of 2.5% and 7.5%.
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