Cost of living eases slightly on lower food, electricity prices

Politics and policy

Inflation dropped to 6.43 per cent in October from 6.6 per cent in September on reduced costs of food and electricity. PHOTO | FILE | NATION MEDIA GROUP 

By KIARIE NJOROGE

In Summary

• This is the second month that the inflation rate has dropped having risen to 8.36 in August.

Falling electricity, food and fuel costs have seen the cost of living fall marginally with October’s inflation rate decreasing to 6.43 per cent from 6.6 per cent in September.

Data from the Kenya National Bureau of Statistics (KNBS) indicates that the fall in the energy prices is attributable to a decrease in the cost of electricity, kerosene and LPG.

“Contributing to the fall in the cost of electricity was fuel cost adjustment which decreased from Sh5.71 per KWh in September toSh4.79 per KWh in October 2014,” said KNBS in a statement.

READ: Electricity costs drop on 210MW injection

The Food and Non-Alcoholic Beverages Index also dropped by 0.45 per cent with average prices of key commodities like sifted maize flour falling from Sh115 to Sh110.

Transport costs have also declined following the reduction in pump prices for diesel and petrol in mid-October.

READ: ERC cuts fuel prices by small margin

This is the second month that the inflation rate has dropped having risen to 8.36 in August. This puts it within Central Bank's preferred medium term range of 2.5-7.5 per cent.