Kenya inflation falls to 5.49percent in May

Kenya’s year-on-year inflation fell to 5.49% in May from 6.58percent a month earlier.

This is thanks to lower food prices, the Kenya National Bureau of Statistics said on Friday.

On a month-on-month basis, inflation was -0.07percent from 3.51percent in April, the statistics office said.

The cost of energy also rose during the period of review with a resultant effect on the cost of transport.

KNBS said the transport index increased by 0.32 percent compared over April helped by higher fuel prices.

The cost of assorted foods including maize, sugar, beans also rose in May but the reduction in the cost of most food items helped to push down inflation.

There were slight increases in the cost of house rent.

Last week, the Central Bank of Kenya left the benchmark lending rate unchanged, at nine per cent for the 7th month running.

CBK governor Dr Patrick Njoroge said there were indications of economic pick-up and generally spending by consumers hence the MPC decision to leave the CBR flat at the November 2018 levels.

The Committee noted that inflation expectations remained well anchored within the target range, and that the economy was operating close to its potential.

The MPC concluded that the current policy stance remains appropriate, and decided to retain the CBR at 9.00 percent.

The government prefers band for inflation is between 2.5 and 7.5 percent in the medium term.

Additional reporting from Reuters