Macroeconomic Forecast Kenya

The Kenya National Bureau of Statistics (KNBS) reported a drop in the annual inflation rate to 4.7% in January, compared with 5.3% in December 2009. This was due to a slowdown in the prices of staple foods such as maize, cabbages and sugar. The KNBS announced that consumer prices increased 0.1% month-on-month in January. We believe that inflation is likely to increase over the course of 2010 on the back of both rising global commodity prices - notably energy - and recovering domestic demand. We are pencilling in end-2010 inflation of 6.3%

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