NAIROBI, Kenya, Jul 31 – Kenya’s Inflation dropped to 7.47 percent in July from last months’ 9. 21 percent just seven days to the general election.
The drop was mainly driven by a significant drop in food prices in the period under review as good weather conditions prevail in major parts of the country.
Food and non-alcoholic index dropped by 2.05 percent between June and July 2017 while year on year food inflation dropped to 12 percent.
The transport index also dropped by 0.29 percent due to a decrease in pump prices of petrol and diesel.
Housing, Water, Electricity Gas index also decreased by 0.08 percent due to a decline in the cost of electricity, Kerosene and cooking gas.
Going forward to the end of 2017, inflationary pressures will be subdued given food prices are expected to continue to decline because of the rainfall witnessed during the long rains period, although depressed., and low global oil prices due to rising US oil production, which has suppressed the global recovery of oil prices, countering OPEC’s decision to extend the deal to cut down on oil production.
low global oil prices will also ease inflationary pressures going forward as US raises its oil production, which has suppressed the global recovery of oil prices, countering OPEC’s decision to extend the deal to cut down on oil production.