Kenya Inflation Rate Accelerates to 8.04% in August


Consumer prices in Kenya increased 8.04 percent year-on-year in August of 2017, above 7.47 percent in July and market expectations of 7.6 percent. The rise in annual inflation is mainly attributed to higher prices of food, as a consequence of reduced supply especially in the second week of the month. The country is struggling with hunger after being hit hard by two years of drought.

Compared to August of 2016, prices continued to rise for food and non-alcoholic beverages (13.57 percent vs 12.19 percent in July) and housing and utilities (3.49 percent vs 3.03 percent). Additional upward pressure came from: transport (2.26 percent vs 2.77 percent); clothing and footwear (3.80 percent vs 4.07 percent) and furniture and household equipment (3.23 perecent vs 3.40 percent).

On a monthly basis, consumer prices went up 0.61 percent following a 0.96 drop in the previous month. Cost recovered for food and non-alcoholic beverages (1.04 percent vs -2.05 percent in the previous month), namely tomatoes, spinach, carrots, wheat flour, rice grade one and potatoes. In addition, prices recovered for housing and utilities (0.54 percent vs -0.08 percent), due to a marginal increase in prices of electricity and kerosene. Also, cost of transport rose marginally 0.03 percent, after dropping 0.29 percent in July, affected by higher prices of diesel, despite the fall in petrol cost.

Kenya Inflation Rate Accelerates to 8.04% in August


Kenya National Bureau of Statistics |Luisa Carvalho | luisa.carvalho@tradingeconomics.com
8/31/2017 3:40:15 PM