it is the responsibility of central bank to advise govt on ways of keeping inflation in check. guess what advice Prof. Ndung'u is offering at the moment? revise the way it is calculated! even the finance minister seems to believe that 'looking at our neighbors,the level of inflation in kenya is abnormal'.

my question to the experts: is Ndung'u talking sense? is there a law in economics that requires neighboring countries to have the same level of inflation? or are we just being hoodwinked to think that govt is doing something...and clap for them as usual?

I would rather listen to Prof. Terry Ryan - who makes way,way more sense than ndungu!

Greedy when others are fearful,Very fearful when others are greedy - to paraphrase WB

i agree with ndungu,the basket of goods used in our CPI calculation are dated,excessive weighting is given to food items,the index does not for example constitute mobile phone airtime....fyi the world bank were the first to note that kenyas cpi index is flawed by close to 100 basis points

I think Prof. Ryan does good analysis. Ndung'u has lost on all fronts. First,on inflation. Second,on global financial crisis,he initially said there would be minimal effect in Kenya. Now,has realised his mistakes and agreed that we gona be affected. By the way what happened to the Grand regency (Cockar) report?.