The cost of living in Kenya dropped to a 10-month low in April to 7.9% from 9.2%. this is attributable to a slight decrease in global fuel prices and lower vegetable prices due to ongoing rains.
Data by the Kenya National Bureau of Statistics (KNBS) shows the price for a kilo of kale dropped to Kshs 63.55 from Kshs 71.87 while that of spinach dropped to Kshs 72.80 compared to Kshs 78.99 in March.
Prices per kilo of cabbage eased to Kshs 53.57 during the period under review from Kshs 65.17 in March, and so did that of tomatoes which dropped slightly from Kshs 113.12 to Kshs 112.69.
Fuel prices remained constant at Kshs 180.05 for a litre of petrol and Kshs 162.91 for diesel. Even so, global fuel prices eased, with a barrel of crude oil going for USD 73.4 from USD 92.6.
Monetary policy measures put in place by the Central Bank of Kenya (CBK) to calm the rising cost of living has also impacted positively in curbing inflation. The lender raised the anchor rate by 75 basis points to 9.5 percent from 8.75 percent.
Read: MPC Hikes Interest Rates to 9.5% from 8.75%
The apex bank said that it noted the sustained inflationary pressures, the elevated global risks and their potential impact on the domestic economy prompting the need to tighten lending rates.
Central banks globally use the interest rates as either a gas pedal or a brake on the economy when needed.
They set the short-term borrowing rate for commercial banks, and the banks pass it along to consumers and businesses.
With inflation running high, they can raise interest rates and use that to pump the brakes on the economy in an effort to get inflation under control.
Even so, the overall cost of food and non-food items remained high, with the Consumer Price Index rising to 131.83 from 131.18 in March.
The cost of food and beverages rose by 10.1 percent compared to 13.4 percent the previous month.
Housing, water, electricity, and gas rose by 9.6 percent while transport went up to 9.8 percent in just one year.
But at 7.9 percent, the cost of living is still above the government’s highest target of 7.5 percent.
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