Kenya Inflation Rate Falls to 5-Month Low of 5%


The annual inflation rate in Kenya decreased to 5.0 percent in August 2019 from 6.3 percent in the previous month. This is the softest inflation rate since March, mainly reflecting weaker food price growth.

Year-on-year, prices rose at a slower pace mainly for food & non-alcoholic beverages (7.1 percent vs 8.5 percent in July); housing & utilities (1.4 percent vs 4.1 percent) and transport (9.5 percent vs 10.5 percent), following a decline in the retail price of super petrol and diesel. Also, cost eased for clothing & footwear (1.8 percent vs 1.9 percent); furnishings & household equipment (1.8 percent vs 1.9 percent); restaurants & hotels (2.3 percent vs 2.8 percent); miscellaneous goods & services (2.5 percent vs 2.8 percent); communication (4.4 percent vs 4.5 percent); health (1.6 percent vs 1.8 percent); education (1.5 percent vs 1.6 percent) and alcoholic beverages & tobacco (6.7 percent vs 9.6 percent). Meantime, inflation remained steady for recreation & culture (0.5 percent).

On a monthly basis, consumer prices inched down 0.9 percent, following a 0.4 percent decrease in the preceding month. Main downward pressure came from food & non-alcoholic beverages (-1.9 percent vs -1.0 percent), mainly attributed to favourable weather conditions. The prices of significant food items including sukuma wiki (kales), potatoes, cabbages, carrots, tomatoes and maize grain loose decreased by 8.01, 7.81, 6.78, 6.01, 4.89 and 2.80 percent, respectively. Also, cost dropped for housing & utilities (-0.1 percent vs 0.1 percent), mainly as a result of the decrease in prices of some cooking fuels. Transport prices decreased by 0.03 percent mainly due to the reduction in pump prices of diesel and petrol by 3.14 and 2.45 percent, respectively. 


Kenya Inflation Rate Falls to 5-Month Low of 5%


Kenya National Bureau of Statistics | Luisa Carvalho | luisa.carvalho@tradingeconomics.com
9/2/2019 7:35:46 AM