Kenya Inflation Rate at 12-Month High of 6.99%


Consumer prices in Kenya increased 6.99 percent year-on-year in January of 2017, following a 6.35 percent rise in the previous month and beating market expectations of a 6.24 percent gain. It was the highest inflation rate in one year, mainly boosted by higher prices for food, caused by drought.

Compared to January of 2016, prices advanced faster for: food and non-alcoholic drinks (12.54 percent compared to 11.22 percent in December of 2016), housing and utilities (0.07 percent from 0.06 percent), transport (1.85 percent from 0.29 percent) and alcoholic drinks, tobacco and narcotics (2.87 percent from 2.73 percent). Meanwhile, cost rose at a slower pace for: furnishing and household equipment (2.95 percent from 3.26 percent), clothing and footwear (4.04 percent from 4.38 percent), restaurants and hotels (4.5 percent from 4.98 percent) and recreation and culture (2.23 percent from 4.41 percent).
Month-on-month, consumer prices increased 1.66 percent following a 0.76 percent gain in December of 2016.
Cost went up the most for food and non-alcoholic beverages (1.66 percent from 1.31 percent in the previous month), namely fruits and vegetables and education (2.28 percent, after being flat in December). Additional upward pressure came from: housing, water, electricity, gas and other fuels (+0.33 percent from +0.41 percent) mainly due to increases in electricity, house rents and charcoal; transport (0.6 percent from 0.49 percent) and alcoholic beverages, tobacco and narcotics (+0.55 percent from +0.47 percent).

Kenya National Bureau of Statistics | Deborah Neves | deborah.neves@tradingeconomics.com
1/31/2017 3:40:20 PM