The rice of vegetables is among indices used to measure inflation. FILE PHOTO | NMG
Inflation dropped to 7.47 per cent last month on falling food
prices, moving within the government's preferred range for the first
time since February this year.
The rate rose above the
government's preferred band of 2.5 to 7.5 per cent earlier in February
after a regional drought caused food prices to surge.
It peaked at 11.7 per cent in May before dropping to 9.21 in June after rains boosted food supplies.
The
lower rate of inflation this month was attributed to a decrease of 2.05
per cent in the food and non-alcoholic drinks index compared with June,
the Kenya National Bureau of Statistics (KNBS) said in a statement
Monday.
"The drop was cause by significant falls in the
prices of several food items arising out of good weather conditions in
some parts of the country," the bureau said.
Central
Bank of Kenya last month forecast the drop and the movement of the cost
of living measure to within the Treasury’s range.
Food is main driver
Food
takes up the largest share (36 per cent) of the basket of goods that is
used to calculate inflation, making it the main driver of the cost of
living, followed by utilities such as rent, water, electricity, gas and
fuels at 18 per cent.
Vegetables, potatoes and maize flour - Kenya’s main staple - have in the past two months been falling.
A
kilo of potatoes dropped 21.3 per cent to Sh56.75 over the past month
while 2kg packet of flour dropped to Sh116.50 last month from Sh119.08
in May.
Falling prices of staple maize flour and other
foods will offer relief to President Uhuru Kenyatta who has battled to
lower the cost of living as he seeks a second term in August elections.
Opposition leader Raila Odinga has used the high cost of living to portray Kenyatta's government as incompetent.
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