Consumers can let out a sigh of relief after Inflation dropped to 5.27 per cent in April.
The Kenya National Bureau of Statistics (KNBS) data shows that the cost of living measure eased from 6.45 per cent in March. The drop is attributed to on lower food prices and reduced motoring expenses as petrol prices fell. .The energy regulator mid-April cut petrol prices to a six year low, offering motorists a big relief.
The rate marks the fourth consecutive drop since December 2015 when inflation stood at a high of 8.01 per cent. The rate also falls within the Central Bank of Kenya’s preferred target range of between 2.5 per cent and 7.5 per cent.
“In totality food inflation stood at 6.84 per cent, which is the lowest, recorded in the recent past,” KNBS said in a statement. Food and non-alcoholic drinks contribute the largest share (36 per cent) of the basket of goods that the bureau uses to calculate inflation
Analysts forecast the fall of inflation could pave the way for an interest cut. The central bank has held the benchmark lending rate at 11.5 per cent since last August.