Reason why Kenyans are better off than 58 months earlier

FILE PHOTO | Daily Nation

Kenyans are for the first time in 58 months experiencing the long-awaited better cost of living as the country’s inflation falls 0.28 percent in the last month.

While there’s a sharp increase in electricity, food, and charcoal, inflation has dramatically dropped in the last month from  4.46 percent to 4.18 percent.

Kenyans, however, are still buying cooking gas and charcoal at a higher price than in the previous month despite inflation drop.

According to data from Kenya National Bureau of Statistics (KNBS), between February and March 2018, food and non-alcoholic drinks’ index increased by 1.54 percent. This was mainly due to increases in prices of some foodstuffs which outweighed decreases recorded in respect to others.

However, KNBS reported that in March 2018 that food inflation eased from 3.83 to 2.19 percent. This shows why inflation dropped in overall prices in some food products, outweighing decreases recorded in respect to others.

Following the recent three-month logging ban imposed by the government, charcoal prices went up the highest by 27 percent to KES. 107 per four-kilo tin.

For the gas, KNBS data indicates that a 13-kg cylinder of cooking gas shot up an average of KES. 2,169 from KES. 2,150 a month earlier.

The Central Bank’s inflation preferred limit is between 2.5 percent and 7.5 percent, making the current March inflation of 4.18 percent within the CBK range.