Inflation outside city falls within CBK target

 

The Central Bank of Kenya building in Nairobi. PHOTO | FILE

By NEVILLE OTUKI

Inflation outside Nairobi last month eased within government’s preferred ceiling of 7.5 per cent, after remaining above the set target since April.

Data from the Kenya National Bureau of Statistics (KNBS) show that inflation for households living in the 46 counties stood at 7.37 per cent last month, down from 7.79 per cent in October.

The Central Bank of Kenya prefers inflation at between  3.5 per cent and 7.5 per cent and Nairobi with a cost of living measure of 4.22 per cent has been within this target since the year started.

The bureau has linked the drop to falling food, electricity and fuel prices that takes a huge budget of households residing outside the city.

“Falling transport prices and to smaller extent electricity have eased pressure on the household budgets,” said Simon Gaitho, a senior statistician at the KNBS.

 Kenya’s capital enjoys a steady supply of commodities from across the country including food, which ensures relatively big drops in prices when supplies are high and mild increases in seasons of scarcity.