Thursday, November 9, 2017

Drop in food prices lowers inflation to 5.1pc

MAUREEN ODUNGA

THE Inflation rate has gone down by 0.2 percentage point in October, thanks for price easing trend. The rate, according to National Bureau of Statistics, slowed down to 5.1 per cent in October from 5.3 per cent in September.

NBS Director of Statistical Operations Mr Irenius Ruyobya said the drop explained the speed of price change of goods in the year ending last month compared to previous month. "Food and non-alcoholic beverages inflation rate, for the month of October fell to 8.8 per cent from 9.3 per cent recorded in September, 2017" said Mr Ruyobya.
As for the overall index it went up to 108.41 in October from 103.17 recorded in similar period last year.
The annual inflation rate for home consumed food and away from home, decreased to 9.4 per cent in October from 9.8 per cent in September, in the same year.
In addition, the 12 month index change for non-food products slightly dropped to 3.0 per cent in October and 3.1 percent in September, this year.
However, Mr Ruyobya also noted that the annual inflation rate which excludes food and energy for the same period stagnated at 1.7 percent in October as it was in September.
On the other hand, the annual headline inflation, which excludes food and energy, rates over the same period have shown a stable trend of movement from 4.5 per cent last October to 5.1 per cent this October.
"The drop of overall index is mainly attributed to prices decrease of food items...some food items that contributed to such include sorghum grain by 9.3 per cent, round potatoes (6.9pc), sorghum flour (5.5pc), cooking bananas (4.2%), cassava flour (2.2%), vegetables (1.7pc) and fresh fish (1.4pc).

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