Kenya Inflation Rate Up to 4.45% in February


In Kenya, the inflation rate rose for the second month in a row to 4.55 percent in February of 2013, as a result of increase in the average prices of various food items.

On the year-on-year basis, the inflation rate increased to 4.55 percent in February of 2013 from 3.67 percent recorded in January. Prices of food and non-alcoholic beverages increased 4.03 percent, with Fresh Packeted and Unpackaged Milk recording the highest increases (21.00 percent and 19.68 respectively). Housing, Water, Electricity, Gas and other Fuels prices increased 4.68 percent. Clothing and Footwear prices rose 5.67 percent, and the transport index rose 3.97 percent in February, compared with the same month last year. Communication’s index, on the other hand, decreased 0.30 percent. 

On the month-to-month basis, the inflation rate was recorded at 0.71 percent in February of 2013. Food and Non Alcoholic drinks’ index increased by 1.29 percent, as a consequence of rises and falls in the average prices of various food items. Housing, Water, Electricity, Gas and Other fuels’ index went up by 0.39 percent between January and February 2013. This increase is attributable to higher costs of house rents, kerosene and other cooking fuels which outweighed observed lower costs of Electricity. Whereas fuel cost adjustment charges per KWh of electricity increased slightly, forex adjustment charges on the other hand, recorded decreases over the review period. The Transport index went up by 0.58 percent over the same period due to higher costs of petrol, diesel taxi, and bus/matatu fares. The slight decline in the communications’ index was attributed to some observed falls in airtime charges.

Joana Taborda | joana.taborda@tradingeconomics.com
2/28/2013 10:54:41 AM