Kenya Inflation Rate At 5-Year High of 11.7% In May


Consumer prices in Kenya jumped 11.70 percent year-on-year in May of 2017, accelerating from a 11.48 percent increase in the previous month. The inflation rate remained the highest since May 2012, mainly driven by rising prices of food, due to last year's severe drought which destroyed agricultural crops.

Compared to May of 2016, prices advanced faster for: food and non-alcoholic drinks (21.52 percent vs 20.98 percent in April); furniture and household equipment (3.28 percent vs 3.10 percent); restaurants and hotels (5.88 percent vs 5.65 percent), miscellaneous goods and services (4.11 percent vs 3.55 percent); communication (0.11 percent vs 0.10 percent); health (3.10 percent vs 3.05 percent) and alcoholic drinks, tobacco and narcotics (3.62 percent vs 3.26 percent). 

Meanwhile, inflation slowed for housing and utilities (2.90 percent vs 2.94 percent); transport (4.64 percent vs 5.11 percent); clothing (3.99 percent vs 4.01 percent); recreation and culture (1.80 vs 1.99 percent) and was steady for education (2.85 percent).

Month-on-month, consumer prices went up 0.75 percent compared to a 1.79 percent gain in the previous month. Cost went up at a softer pace for food and non-alcoholic beverages (1.26 percent vs 3.55 percent in April), due to a significant declines in prices of sukuma wiki, cabbages, potatoes and spinach, related to ongoing rains. Also, cost eased for housing, water, electricity, gas and other fuels (0.06 percent vs 0.63 percent), led by a slowdown in house rents and cooking fuels.

Kenya National Bureau of Statistics | Luisa Carvalho | luisa.carvalho@tradingeconomics.com
5/31/2017 4:24:15 PM