Consumer prices rose 0.5 percent year-on-year in the month of November 2015, the Central Statistical Office reported in a statement. In the first eleven month, inflation was -0.1 percent and will remain low for a prolonged period, according to analysts.
The price of alcoholic beverages and tobacco went up 3.7 percent, while the price of motor fuels decreased 12.6 percent over the last 12 months. On a monthly basis, the price of services and clothing inched up. The KSH report estimates that the annual average inflation rate will be zero percent for the full-year, in line with analysts estimates.
Economists expect that consumer prices will remain subdued for a sustained period and will remain below the 3 percent target of the National Bank for 2017.
Low oil prices have played a significant part in the modest rise of inflation in November and on an annual basis it has decreased the annual average inflation rate by 1.2 percentage points. The modest inflationary environment helps pensions and wages retain their value and facilates the investment planning of businesses, the National Economy Ministry said in a statement.
