Inflation eases to 6.86pc in February

Parking attendants issue a motorist with a parking ticket on a Nairobi street. February inflation dropped to 6.86pc from 7.21pc in January despite marginal increases in food, fuel and transport costs. FILE 

By Gerald Andae
inShare

The rate of inflation in the country defied the marginal increases in food, fuel and transport costs to drop to 6.86 per cent in February from a high of 7.21 per cent in January.

The move signifies the growth of the economy as the level inches closer to the Central Bank of Kenya (CBK's) desired rate of five per cent.

READ: Inflation rate inches closer to Central Bank’s limit

An inflation rate of above 7.5 per cent is considered a hindrance to economic growth as it erodes consumers’ purchasing power.

Statistics from Kenya National Bureau of Statistics (KNBS) indicates that the Consumer Price Index (CPI) during the month in review went up by 0.38 per cent from 145.4 in January to 145.95.

The report, which was released on Friday, also show that between January and February 2014, housing, water electricity, gas and other fuels’ index increased by 0.70 per cent.

“Transport index increased by 0.24 per cent over the same review period, mainly on account of higher price of petrol, diesel, parking charges as well as public transport fares,” reads KNBS statement.

The County government of Nairobi reviewed the parking charges in February from Sh140 per day to Sh300.