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Kenya's inflation falls to 6.6 percent in October
NAIROBI, Nov 04, 2009 (Xinhua via COMTEX) --
Kenya's inflation rate declined to
6.6 percent in October from 17.8 percent in September due to the
impact of a new method of calculation adopted by the statistics
bureau.
The Kenya National Bureau of Statistics (KNBS) said in a
statement received here Wednesday that it had shifted to using a
geometric mean method of calculating inflation.
KNBS Director General Anthony Kilele said the switch from the
traditional arithmetic mean would give a new basket of goods and
services with which to calculate the Consumer Price Index (CPI).
However, the new basket of consumer goods will be factored in
the calculation of inflation rates from February 2010.
The bureau said food and non alcoholic drinks' index went up by
0.55 percent from 157.29 points in September to 158.15 points in
October 2009.
This is attributed to rise in the prices of English potatoes,
beans, cabbages, beef with bones and sugar among other food items.
During the same review period, the fuel and power index
increased by 0.95 percent from 134.27 points in September 2009 to
135.55 points in October 2009.
"This was mainly due to increase in the cost of electricity,
paraffin and charcoal by 12.62, 1.56 and 1.31 percent,
respectively," the bureau said.
The East African nation has been using the arithmetic means,
which has been widely criticized, with many arguing it had an
upward bias to the computed index.
For example, the basket of goods and services consumed by
households has also remained unchanged over the years and has been
viewed as being vulnerable to erratic price movements in the
market.
The data is generated from 13 urban centers in the country and
it is believed to be a reflection of the spending behavior among
Kenyans.
It is collected in the second and third weeks of the month
under review in order to maintain consistency in price variations.
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