Inflation drops to 26.5pc

July 31, 2008

, NAIROBI, July 31 – Inflationary pressure that has seen the cost of living sky-rocket for Kenyan consumers, seems to be easing for the second month now.

Latest figures from the Kenya National Bureau of Statistics indicate that the country’s annual inflation rate fell from 29.3 percent in June to 26.5 percent in July, as food prices dropped.

Underlying inflation, which excludes the prices of food, rose from 11.2 percent to 12.2 percent due to increases in the cost of electricity, which went up by 51 percent in July.

"The food and non-alcoholic drinks index decreased by 2.9 percent … in July mainly due to decreases in the prices of carrots, tomatoes and onions, among other foods," the Bureau of Statistics said in a statement.

"The fuel and power index rose due to increases in the cost of electricity, and petroleum products, especially paraffin," the statement added.

Last month, the country recorded 29.3 percent inflation compared to 31.5 percent recorded in May.

While releasing last month’s results, the government forecast that once supply constraints issues

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