Kenya inflation drops on lower petrol and cooking gas prices

 

The energy regulator cut petrol and diesel prices mid-March, offering motorists a relief in transport expenses. PHOTO | FILE 

By NEVILLE OTUKI

Kenya’s inflation dropped marginally last month to 6.45 per cent on lower petrol and cooking gas prices.

This is the third month in a row that inflation has dropped from 6.84 per cent in February, 7.78 per cent a month earlier and 8.01 per cent in December.

The energy regulator cut diesel and petrol prices by two shillings and one shilling a litre respectively mid-March, offering motorists a relief in transport expenses. Kerosene went up by two shillings a litre.

Petroleum prices have a bearing on inflation because they affect operation and production costs of manufacturing, agriculture and transport.

Producers and transporters often respond to the cost movements by adjusting retail prices of their products and services.

Cooking gas prices on average were down by Sh41 to Sh2,277 for a 13kg cylinder, according to Kenya National Bureau of Statistics (KNBS)data. Food prices were, however, up, including cabbage, peas and mutton.

Food takes up the largest share (36 per cent) of the basket of goods that is used to calculate inflation, followed by utilities.

Electricity prices remained unchanged for the second month in a row.

Homes that consumed 200 kilowatts hours (units) continued to pay Sh3,398 while those using 50 units paid Sh534.

At 6.45 per cent, the cost of living measure is within the Central Bank of Kenya’s  preferred target range of between 2.5 per cent and 7.5 per cent.