The annual inflation rate in Kenya rose to 5.82 percent in December 2019, its highest level since July, from 5.56 percent in the previous month. Main upward pressure came from prices of food (10.02% vs 9.58% in November), namely vegetables such as beans, maize flour, tomatoes and onions, amid higher demand during the festive season. Cost also advanced faster for transport (2.74% vs 1.98%) and clothing & footwear (1.52% vs 1.47%). Meanwhile, inflation softened for housing & utilities (2.40% vs 2.47%); furnishings (1.24% vs 1.33%); restaurants & hotels (2.12% vs 2.38%); miscellaneous goods & services (1.67% vs 1.88%); health (1.20% vs 1.30%); education (1.38% vs 1.44%); recreation & culture (0.23% vs 0.31%) and alcoholic beverages & tobacco (7.37% vs 7.53%). On a monthly basis, consumer prices inched up 0.90 percent, after increasing 0.40 percent in the prior month. Inflation Rate in Kenya averaged 9.40 percent from 2005 until 2019, reaching an all time high of 31.50 percent in May of 2008 and a record low of 3.18 percent in October of 2010. source: Kenya National Bureau of Statistics
Inflation Rate in Kenya is expected to be 6.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Rate in Kenya to stand at 4.60 in 12 months time. In the long-term, the Kenya Inflation Rate is projected to trend around 6.00 percent in 2020, according to our econometric models.