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Kenya’s year on Year inflation down to 5.47 in May

NAIROBI, Kenya, May 29-Kenya’s overall year on year inflation rate in May dropped to 5.47 percent from the revised 5.62 percent recorded in April, according to data by the Kenya National Bureau of Statistics.

At the same time, the CPI increased by 0.63 percent from 107.92 in April 2020 to 108.60 in May 2020.

According to the KNBS report, Food and non-alcoholics increased by 0.86 percent between April and May while the year on year food inflation in May 2020 stood at 10.55 percent.

Housing, water, electricity, gas and other fuels increased by 0.84 driven despite a slight increase in the cost of house rents.

Onions and carrots recorded the highest percentage increase of 4.51 and 3.32 respectively with oranges, spinach and Sukuma wiki recording 3.32, 2.57 and 2.24 percent increase each.

On the other hand, prices of some food items such as avocado, potatoes and tomatoes decreased by 4.50, 3.58 and 3.0 percent.

The alcoholic beverages, tobacco and narcotics index also increased by 0.86 percent, while its year on year rate stood at 10.55 percent.

Transport index increased by 0.02 percent due to hiked matatu and taxi fares, even when prices of petrol and diesel dropped by 9.81 per cent and 19.92 per cent respectively during the period under review.

Central Bank of Kenya Governor Patrick Njoroge had in March assured that the COVID-19 pandemic is unlikely to affect the country’s inflation.

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“Inflation is not a concern anymore and we expect it  to decline towards midpoint of around 5 percent  , food inflation is expected to come down, tomatoes whose prices had risen have come down. Non-food like fuel remains low and stable, concerns about inflation are low,” he said.

The rebased CPI was put in place to enhance the quality of statistics, including the measurement of inflation, upon which policymakers base their decisions.

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