Kenya Inflation Rate Rises to 4-Month High in June


The annual inflation rate in Kenya increased to 4.28 percent in June of 2018 from 3.95 percent in May, below market expectations of 5.3 percent. It was the highest inflation rate since February, mainly due to higher prices of food and non-alcoholic beverages and housing and utilities. On a monthly basis, consumer prices fell 0.89 percent, after a 0.97 percent gain in the previous month.

Compared to May of 2017, cost went up further for food and non-alcoholic beverages (0.90 percent compared to 0.34 percent in May); housing & utilities (14.17 percent compared to 13.73 percent); transport (7.47 percent compared to 7.01 percent) and furnishings and household equipment (4.64 percent compared to 4.51 percent). Additionally, prices rose faster for communications (0.85 percent compared to 0.82 percent); education (5.11 percent compared to 5.07 percent); health (4.22 percent compared to 3.98 percent) and alcoholic beverages & tobacco (2.77 percent compared to 2.25 percent). In contrast, cost eased for clothing & footwear (4.17 percent compared to 4.27 percent); restaurants & hotels (4.77 percent compared to 4.92 percent); miscellanous goods & services (4.12 percent compared to 4.19 percent) and recreation & culture (1.52 percent compared to 1.53 percent). 

On a monthly basis, consumer prices dropped 0.89 percent, after a 0.97 percent increase May. Cost declined for food & non-alcoholic beverages (-2.2 percent compared to 1.35 percent), mostly due to a fall in prices of some foodstuffs outweighed, namely gren maize (-25.85 percent), onions (-18.20 percent) and potatoes (-15.08 percent). Also, prices slowed for housing & utilities (0.52 percent compared to 1.79 percent), driven by electricity charges (-4.99 percent). Meanwhile, cost of transport advanced at a faster pace (0.37 percent compared to 0.10 percent), boosted by higher prices of petrol and diesel.

Kenya Inflation Rate Rises to 4-Month High in June


Kenya National Bureau of Statistics | Stefanie Moya | stefanie.moya@tradingeconomics.com
6/29/2018 11:01:11 AM