March 2024 has recorded the lowest inflation rate in 12 months, according to the latest statistics published by the Kenya National Bureau of Statistics (KNBS).
The report detailed that the inflation rate for March was at 5.7%, compared to the rate in March 2023 which was 9.2 per cent.
Subsequently, the following months from March 2023 according to the report recorded a decline apart from June 2023 and January 2024 when the inflation rate suddenly increased.
However, since January 2024, the inflation rate has eased steadily from 6.9 per cent in January to 5.7 per cent as of the end of March.
Also, the report indicated that the Consumer Price Index (CPI) which monitors the price movements and how they affect policy decisions steadily increased from 131.18 in March 2023 to 138.66 in March 2024.
At the same time, the overall Consumer Price Index (CPI) continued to increase over the last one year including in March 2024.
Also Read: List of Commodities Whose Prices Dropped, Increased in March
According to KNBS and the Central Bank of Kenya, a reduction in inflation rate means an ease of the tough economic times.
Reduction in Food Prices
Consequently, KNBS indicated that the prices of several items decreased in March including wheat flour, sifted maize flour, loose maize grain and loose maize flour.
In addition, the prices of fortified maize flour, carrots, Kerosene, Diesel, electricity and sugar dropped in March.
However, the prices of other items increased including those of onions and mangoes, tomatoes, cabbages, beef with bones, potatoes and oranges.
Also Read: CBK Slaps Kenyans with Highest Interest Rates in 12 Years After Crucial Meeting
Kenya’s Inflation Rate Reduction Meaning
According to the March 28 report issued by the Central Bank of Kenya, Inflation in advanced economies has been easing.
In addition, CBK indicated that global economies have continued to recover due to increased economic activities in advanced economies.
“But remains sticky, with Spain’s headline inflation rising to 3.2 per cent in March from 2.9 per cent in February 2024.
The US dollar index strengthened by 0.33 per cent against a basket of major currencies during the week ending March 27. International oil prices decreased during the week ending March 27, on account of decline in oil demand,” stated CBK.
Earlier in February, CBK stated that the shilling had continued to stabilize, attributing the gain to favorable diaspora remittances and the thriving Tourism industry.
CBK noted that the Kenyan Shilling was trading for 158.66 units against the US Dollar then and had continued to decline trading at Ksh130 against the dollar.
