Kenya’s inflation rate slowed for the third successive month to 9 percent in January 2023, the lowest since August 2022.
The downward trajectory reflects the World Bank’s expectations for inflation in Kenya to decrease to 6.4 percent in 2023 and 5.5 percent in 2024.
The World Bank projected a fast disinflation process (a lower inflation print in consecutive periods) among non-resource-rich countries such as Kenya and Ethiopia which also share similar inflation drivers in contrast with resource-rich countries which are expected to see a slower disinflationary process.
Kenya’s inflation rate hit a new five-year high of 9.2 percent at the end of last month, the highest point since June 2017.
“The overall year-on-year inflation rate as measured by the Consumer Price Index (XPI) was 9.0 percent, in January 2023,” the Kenya National Bureau of Statistics (KNBS) said in a statement.
KNBS attributed the rise in inflation between January 2022 and January 2023 to an increase in prices of commodities under transport at 13 percent, food, and non-alcoholic beverages at 12.8 percent, and housing, water, electricity, gas, and fuel at 7.3 percent.
These three divisions account for over 57 percent of the weights of the 13 broad categories.
Prices of commodities under furnishings, household equipment, and routine household maintenance recorded a 9.3 percent increase over the period.
“The CPI increased by 0.2 percent from an index of 128.99 in December 2022 to 129.29 in January 2023,” KNBS statement further reads.
The month-to-month Food and Non-Alcoholic Beverages Index increased by 0.2 percent between December 2022 and January 2023.
Recently the Central Bank of Kenya Monetary Policy Committee retained the lending rate at 8.75pc due to less impact felt in the economy after the last review.
The committee projected that inflationary pressures will ease due to the State’s move to allow duty-free imports of maize, sugar, and rice.
