Significant drop in food prices has pushed down Kenya's overall inflation to 3.25 percent in November from 4.14 percent in October, the country's national statistics bureau said on Friday.

Kenya's National Bureau of Statistics (KNBS) said the Consumer Price Index (CPI), computed using the geometric mean approach increased by 0.65 percent from 132.46 in October to 133.33 in November.

"Between October and November, Food and Non-Alcoholic drinks index increased by 0.65 percent. Some of the food products recorded marginal increases between October and November," the bureau said in the statement.

Economic analysts say the country's inflation has remained within the government target, the exchange rate has been stable and private sector credit was growing within the target growth path.

The overall inflation continued to decline in October and was within the 5 percent target set by the government for the fiscal year 2012/13.

The overall month-on-month inflation also has declined from 6. 09 percent in August to 5.32 percent in September and further to 4. 14 percent in October. The decline in inflation was reflected across all the measures of inflation as well as all income groups.

According to the Central Bank of Kenya (CBK), declining food prices, despite increases in fuel prices, coupled with easing demand pressures in the economy continued to support the decline in inflation.

Non-food-non-fuel inflation declined from 7.16 percent in September to 6.17 percent in October which remained within the 7.5 percent upper bound of the target set by the government for overall inflation, developments that the apex bank said support a low and stable outlook for inflation.

"Comparison of the November food average prices to their respective November prices reveals a significant drop of some food items. However, the division's index recorded a 1.74 percent increase during this period," the bureau said.

According to the bureau, housing, water, electricity, gas and other fuels' index went down by 0.14 percent between October and November. This decrease was mainly attributed to lower costs of electricity, cooking gas and kerosene.

"For instance, due to lower forex and fuel cost adjustment charges, the cost of consuming 50 kwhrs of electricity decreased from 7.5 U.S. dollars in October to 6.7 dollars," the bureau said.