Inflation falls to 7-year low at 4.18 per cent

By Lee Mwiti

The inflation rate hit the lowest level in seven years to settle at 4.18 per cent in March, down from 4.46 in February.

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This level was last witnessed in February 2011 when it stood at 4.05 per cent. The continued decline in the inflation rate has been attributed to a rise in the prices of some foodstuff which outweighed decreases recorded by others. The latest figure means that the cost of living remained within Central Bank of Kenya’s (CBK) desired range of between 2.5 per cent and 7.5 per cent.
“Overall inflation is expected to be within the Government target range in the near term mainly due to expectations of contained food prices following improved weather conditions,” said Central Bank of Kenya’s Monetary Policy Committee during its last meeting to review its benchmark rate.
Among the foodstuff that recorded a decline in prices, according to MPC were Irish potatoes, cabbages, and sugar. Avoid fake news! Subscribe to the Standard SMS service and receive factual, verified breaking news as it happens.
Text the word 'NEWS' to 22840 “Non-food-non-fuel (NFNF) inflation remained below five per cent indicating that demand-driven inflationary pressures are muted,” said CBK. Between February and March, food and non-alcoholic drinks’ index increased by 1.54 per cent.