September inflation cools to 4.2 per cent on lower energy, transport costs

The cost of living has continued to ease with the rate of inflation in September cooling further to 4.2 per cent from 4.36 per cent in August.

According to new data from the Kenya National Bureau of Statistics (KNBS) Consumer Price Index (CPI) the lower inflation rate is largely attributable to lower energy and transport costs.

The housing, water, electricity, gas and other fuel index declined by 0.05 per cent on the back of lower cooking oil and kerosene costs.

Meanwhile, the transport index reduced by 0.01 per cent due to a significant drop in diesel prices which outweighed increases in petrol prices.

Nevertheless, the food and non-alcoholic drinks index rose by 0.15 per cent on the back of a 5.18 per cent food inflation rate which lifted the cost of peas, oranges, Irish potatoes and cabbages.

The cooldown in inflation continues to exhibit a trend of disinflation which is defined as a general ease to common consumer costs.

Kenya’s rate of inflation stands at its lowest on record since the adjustment of the consumer spending basket in February this year.