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.