February Inflation to Fall Within 5.9 – 6.2% – Cytonn Investments

Cytonn Investments has projected that the inflation for the month of February will increase from 5.8 percent recorded in January to fall within the range of 5.9 – 6.2 percent.

According to analysts from Cytonn, the month on month (m/m) inflation for the month of February is expected to rise due to two main indexes; the food index and the transport index.

A rise in the food and non-alcoholic beverages index which has a weighting of 36.0 percent will be recorded, mainly due to the rise in food prices and especially tomatoes.

A significant rise will be recorded in the tomato index mainly due to supply shortages as a result of heavy rainfall, which destroys tomatoes.

Tomato prices have gone up by 36.1 percent to 130.2 shillings from 95.7 shillings per kilogram recorded in December 2019.

The transport index which has a weighting of 8.7 percent contribution to GDP will also record a rise after EPRA announced new fuel prices on 14^th February 2020.

Petrol prices have increased by 2.4 percent to 113.9 shillings, from 111.2 shillings per litre previously.

Diesel prices, on the other hand, have increased by 2.1 percent to 104.4 shillings per litre from 102.3 shillings per litre, previously.