Kenya – Inflation Decreases for the First Time in Nine Months Despite CBK Rate Increases.

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Due to a decline in food and fuel prices as well as rate increases to control the cost of living, inflation has slowed down for the first time in nine months.

Consumer prices decreased from 9.6% annually in October to 9. 5% annually in November as household budgets were squeezed by high inflation and there was less demand for goods and services.

Since June, annual inflation has exceeded the central bank’s 7. 5 percent cap, and in October it accelerated more quickly to 9. 6 percent, a level last seen in 2017 when a severe drought increased food prices.

Workers have been forced to reduce spending on non-essential items like beer and airtime as the cost of essential commodities has increased.

 President William Ruto, who took power in September and campaigned on a platform of easing the cost of living for the majority of poor households, has ruled out short-term fixes, dropping subsidies on maize flour and super petrol.

BDA

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