Inflation eases to 5.72pc in October

Kenya’s inflation dropped to within the government’s target during the month slowing to 5.72 percent as food prices continued to stabilize.

The easing is marked the second straight month the cost of living dropped after falling to 7.01 percent in September.

Data from the Kenya National Bureau of Statistics (KNBS) shows the food and non-alcoholic drinks index fell by 1.78 percent in the month of October, attributable to the favorable weather.

This is the lowest inflation has been since June 2016 when it stood at 5.8 percent.

The country has been recovering from a serious drought experienced at the start of the year that at one point pushed inflation to a high of 11.7 percent in May.

The cost of cabbages dropped by the largest margin from Sh46.58 in September to Sh38.57 this month.

Kenyan farmers have been experiencing better harvests over the last three months, with food making up the major component of calculating inflation.

Energy costs also remained relatively low during October with the housing and utilities index going up by 0.47 percent.

The cost of fuel has been steadily creeping up leading to increase in electricity charges.

“The higher cost of electricity was attributed to increase in the foreign exchange adjustment charges despite the fuel and other charges remaining constant,” KNBS director general Zachary Mwangi said.

The transport index also rose by 0.86 percent in October on account of higher as fuel prices.