Kenya's year-on-year inflation rate fell for the 11th straight month to 4.14 percent in October from 5.32 percent the previous month due to slower food price rises, the statistics office said on Wednesday, raising the likelihood the central bank may cut its interest rate.A Reuters poll had given a median estimate of 4.88 percent.The Kenya National Bureau of Statistics said the rise in year-on-year food prices slowed to 1.44 percent in October from 2.91 percent in September. Housing and utility costs rose 6.24 percent, slower than the 7.67 percent posted in September.The food and non-alcoholic drinks index carries a 36 percent weight in the basket of goods used to measure inflation.However, month-on-month the CPI index rose 0.43 percent, quicker than the 0.29 percent recorded in September.After peaking in November last year at about 20 percent, inflation has been falling steadily this year thanks to increased food production, lower costs of crude oil and an effectively tight monetary stance.Analysts said the drop in the inflation rate raised the possibility the central bank may cut its key Central Bank Rate in November from 13 percent where it stands."With a vast differential now opening up ... between Kenya's policy rate and the rate of inflation, the focus will now shift to just how aggressive a rate cut we will see from the CBK next week," Razia Khan, head of research for Africa at Standard Chartered in London, said."Although the gap between the policy rate and inflation (which we think will decelerate a touch more before it turns) certainly supports an outsized rate cut, we would still advise some caution, and a measured, drawn out easing cycle over time," Khan said.Last week, the International Monetary Fund cautioned Kenya, east Africa's biggest economy, to watch out for inflationary pressures that may emerge if global food prices should rise further. While global prices of some grains are higher, they are still lower than 2008 record levels.Agencies