Kenya: Inflation falls to over one-year low in February
Consumer prices rose 0.41% month-on-month in February on a seasonally-adjusted basis, up from January’s 0.31% increase. The print came on the back of price increases for clothing and footwear, housing, water, electricity, gas and other fuels, and transport. On the other hand, food prices rose at a softer pace
Meanwhile, inflation eased to 5. 1% in February, easing slightly from January’s 5.4%. February’s figure marked the lowest inflation rate since July 2020. Accordingly annual average inflation fell to 6.0% in February (January: 6.1%).
Analysts at the EIU added:
“Following a confirmed uptick to 6.1% in 2021—owing to costlier oil and food, as well as tax increases—inflation trends in 2022-26 will be driven mainly by prices of imported commodities and oil, and by foreign-currency movements. A further rise in oil prices and faster currency depreciation will be major sources of cost pressure in 2022, leading to inflation of 6%, close to the long-term trend, although the figure is being muted by ongoing fuel price subsidies.”