The overall inflation rate has dropped to 3.25 percent in November 2012 from 4.14 percent recorded in October 2012. This is the lowest recorded rate of inflation in Kenya over a period of more than 24 months. The last time such an inflation figure was recorded was back in April 2010 when the rate of inflation stood at 3.22 percent.

Kenya’s inflation rate has been on a decline over the past 12 months from a record high of 19.72 percent in November 2011.

Since late last year the government had put in place measures to lower the rate of inflation. Such measures included the move by the Central Bank of Kenya to increase the base lending rate (CBR) and conducting currency mop ups to strengthen the Shilling.

This drop in inflation can be attributed to a drop in the Consumer Price Indices (CPI). CPI recorded for November 2012 has dropped to 131.33 from 132.46, an indication that November 2012 was a more economically friendly month as compared to October 2012.

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

More information in regard to the CPI will post in our November consumer month review article to be posted soon.