November inflation eases to 9.5% marking first drop in nine-months

The cost of living as measured by inflation has eased slightly to 9.5 per cent in November from 9.6 per cent in October according to new KNBS data.

The year-over-year change in consumer prices has marked the first decline in nine months since February when inflation fell to 5.1 per cent from 5.4 per cent in January.

The suggested peak in inflation has been supported by a 0.4 per cent decline in food inflation with the prices of commodities under food and non-alcoholic beverages rising by 15.4 per cent in the period from 15.8 per cent in October.

Housing and energy costs have also risen by a slower rate of 6.1 per cent compared to 7.1 per cent in October.

Moreover, the Housing, Water, Electricity, Gas and other fuels index has declined by 0.4 per cent to offset a 0.5 per cent rise in October supported by a decline in electricity, LPG and kerosene prices.

Transport costs have likewise declined by a single percentage month over month backed by the slight ease to fuel costs in the middle of November when fuel prices declined by Ksh.1 across the board.

Month over month, the cost of key food commodities including cooking oil, tomatoes and maize flour have shown signs of peaking after marking declines in the period.

The cost of a litre of salad cooking oil has for instance fallen by six per cent to Ksh.344.51 in November from Ksh.366.48 in October.

A two-kilogram packet of sifted maize flour is meanwhile priced at Ksh.177.78 from Ksh.179.61.

The cost of packet milk, beans, Sukuma wiki, potatoes and cabbages has nevertheless increased from October.

Despite data from the Kenya National Bureau of Statistics (KNBS) suggesting a turning point (peak inflation), inflation remains well above the government’s target range of 2.5 to 7.5 per cent.

Last week, the Central Bank of Kenya (CBK) effected its third interest rate hike for the year, setting the Central Bank Rate (CBR) at 8.75% with a view of anchoring inflation expectations.