Kenya’s annual headline inflation edges up to 7.21% in January 2014

By bne IntelliNews January 31, 2014

Kenya’s inflation rate ticked up to 7.21% y/y in January from 7.15% a month earlier due to high transport and food prices, data from the Kenya National Bureau of Statistics showed.

The prices of food and non-alcoholic beverages, which have the largest weight in the CPI basket at 36.04%, rose 10.14% y/y in January, marginally retreating from a 10.41% increase in December.

The prices of housing, water, electricity, gas and other fuels, which account for 18.3% of the total consumer price index (CPI), rose 4.82% y/y, decelerating from 5.02% annual growth in December. Transport prices, which have an 8.66% weight, rose 1.95% m/m in January, sending the annual growth to 6.77% y/y from 5.37% y/y in the previous month. This was due to higher prices of petrol, diesel, parking charges and public transport fares.

Kenya’s monthly headline inflation rate quickened to 1.08% in January from 0.5% in December, with food prices increasing 1.0% m/m (+0.55% in December) and housing, water, electricity, gas and other fuels prices growing 0.87% (+0.01% in December). 

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