The slight decrease in pump prices helped to slow down a four month rally in consumer prices bringing down inflation to 7.78 per cent in January from 8.01 per cent last month.
The drop in inflation is a respite to the Central Bank which stood back in the last rate setting meeting to leave the benchmark rate unchanged even as governor Patrick Njoroge maintained inflation will soon ease.
Energy Regulatory Commission (ERC) reduced the prices of diesel and super petrol by less than Sh2 and the Kenya Bureau of Statistics noted its effect on electricity cooking gas and kerosene.
The prices of food continued to push upwards as tomatoes onions and cabbages became more expensive outweighing the slight decrease in Irish potato prices and Sukuma Wiki.
The back to school rush also saw the education, recreation and cultural indices record increases on account of hike in book and tuition costs.
The Central Bank of Kenya (CBK) retained the benchmark lending rate at 11.5 per cent noting that the rise of the cost of living beyond its target of 7.5 was mainly being driven by food costs.