The Central Bank of Kenya's survey released after the Monetary Policy Committee meeting on Monday, January 31, indicated that prices of several products would drop in February.
According to CBK's agricultural survey snapshot, respondents expressed confidence that prices of most food items would decline or remain unchanged in February.
Food items whose prices are expected to decline include maize, rice, wheat, beans, green grams and vegetables, among others.
Despite their prices likely to drop, CBK's survey added that their supply would be sufficient in the coming months due to ongoing harvests and expected duty-free imports.
"The economy is expected to remain resilient in 2023, supported by the continued strong performance of the services sector and expected recovery in agriculture, despite the global uncertainties," the CBC report indicated.
Besides agricultural products, CBK was upbeat that fuel prices would reduce due to the global projection on landing costs.
"International prices of oil have moderated and we expect that the price of oil will hover around there per barrel," CBK Governor Patrick Njoroge stated during the Monetary Policy Committee meeting on Tuesday, January 31.
At the same time, CBK did not raise lending rates shielding borrowers from expensive loans.
"The MPC concluded that the current monetary policy stance remains appropriate, and therefore decided to retain the Central Bank Rate (CBR) at 8.75 per cent," CBK stated.
"The Committee will closely monitor the impact of the policy measures, as well as developments in the global and domestic economy, and stands ready to take additional measures, as necessary," CBK added.
CBK's projection came just days after President William Ruto announced that prices of maize flour would reduce in six months.
While making the announcement, the Head of State castigated Azimio la Umoja arguing that it had derailed his development agenda.
