It’s now a matter of days to the close of the year and with November having come to an end let’s see how economically friendly November 2012 was.

Contrary to our expectations, data from Kenya National Bureau of Statistics (KNBS) show that the CPI increased by 0.65 percent to stand at 133.33 in November from 132.46 in October. This is an indication that the price of consumer goods and service increased in November as compared to October.

A CPI measures change in price level of consumer goods and services purchased by households.

Between October and November 2012, Food and Non-Alcohol drinks’ index increased by 1.65 percent. Some food products, such as sugar, wheat flour and sifted maize flour recorded marginal price increase over the period between October and November 2012. Comparison of the November 2012 food average prices to their respective November 2011 prices reveals a significant drop in price of some food items. However, the division’s index recorded a 1.74 percent increase during this period.

Housing, Water, Electricity, Gas and Other fuel’s index dropped by 0.14 percent between October and November 2012. This drop can be attributed to the recent drop in electricity bills, cook gas and kerosene.

As it was expected, the Transport index dropped marginally by 0.01 percent over the same period mainly due to drop in fuel prices. The price of super petrol and diesel dropped by KES 1.58 and KES 1.14 respectively.

The subsequent result of the above price changes was a drop in the overall inflation rate. Inflation currently stands at 3.25 percent from 4.14 percent, the lowest recorded over a period of more than 24 months.