Kenya’s inflation rate drops in October after steady four month rise

An attendant fuels a car at a petrol station. Kenya’s inflation rate fell in October after rising for four consecutive months helped by a decrease in electricity and transportation costs. Photo/FILE  Nation Media Group

By David Mugwe

In Summary

• Kenya’s inflation rate fell in October after rising for four consecutive months helped by a decrease in electricity and transportation costs.
• The Kenya National Bureau of Statistics (KNBS) on Thursday said that the country’s inflation rate - which is the pace at which the prices of basic goods and services are going up – in October, stood at 7.76 per cent compared to 8.29 per cent in September

Kenya’s inflation rate fell in October after rising for four consecutive months helped by a decrease in electricity and transportation costs.

The Kenya National Bureau of Statistics (KNBS) on Thursday said that the country’s inflation rate - which is the pace at which the prices of basic goods and services are going up – in October, stood at 7.76 per cent compared to 8.29 per cent in September.

The Energy Regulatory Commission (ERC) mid this month announced a drop in the maximum pump prices for the first time since May as global crude oil prices fell.

Electricity costs also dropped during the month handing motorists some relief after the recent surge in the cost of living.

“This was on notable reductions in the prices of kerosene, electricity and cooking gas. The housing, water, electricity, gas and other fuels index declined by 0.16 per cent,” said KNBS in a statement.

KNBS said that although forex adjustment charges increased by Sh1.39 to Sh1.46 per Kwh, fuel costs adjustment charges decreased to Sh5.18 from Sh5.43 per Kwh of electricity consumed leading to the lower cost of electricity in October compared to September.