Kenya’s Overall inflation decreased to 9.1 percent in December 2022 from 9.5 percent in November, mainly due to lower food prices, the Central Bank of Kenya has said.
According to CBK, food inflation declined to 13.8 percent in December from 15.4 percent in November, largely driven by a decrease in prices of maize and milk products following improved supply attributed to the ongoing harvests and impact of the recent short rains, respectively.
In a statement, CBK boss Dr. Patrick Njoroge said prices of edible oils and wheat products declined due to lower global commodity prices with the easing of international supply chain disruptions.
“Fuel inflation declined to 12.7 percent in December 2022 from 13.8 percent in November, due to lower international oil prices, but remains elevated on account of the scaling down of the fuel subsidy and increases in electricity prices due to higher tariffs” he said.
Also Read: President Ruto Chairs First Paperless Cabinet Meeting
Further Inflation Drop
Njoroge added that overall inflation is expected to decline in the near term, also supported by the recently announced Government measures to allow duty-free imports of key food items particularly maize, rice and sugar.
“The outlook for global growth has improved with easing inflation pressures in major economies particularly in the U.S., as well as China’s lifting of COVID-19 restrictions. Additionally, volatility in global financial markets has moderated amid expectations of a slower pace of monetary policy tightening” he equipped.
“Nevertheless, risks remain mainly reflecting geopolitical tensions particularly the ongoing war in Ukraine, and the pace of the monetary policy response in the advanced economies” Njoroge added.
The recently released GDP data for the third quarter of 2022 together with leading indicators show that the Kenyan economy registered strong growth in 2022. Real GDP grew by 4.7 percent in the third quarter of 2022, mainly driven by robust activity in wholesale and retail trade, education, electricity and water, and real estate sectors.
Based on available economic indicators, GDP is estimated to have grown by 5.6 percent in 2022. The economy is expected to remain resilient in 2023, supported by continued strong performance of the services sector and expected recovery in agriculture, despite the global uncertainties.
