Kenya Inflation Rate Slows to 5.72% in October


Consumer prices in Kenya increased 5.72 percent year-on-year in October of 2017, easing from a 7.06 percent rise in the previous month and below market expectations of 6.73 percent. It is the lowest inflation rate since May of 2016 amid a slowdown in food cost, mainly due to better weather conditions. On the other hand, higher electricity cost and a rise in pump prices of petrol and diesel pushed transport cost up.

Compared to October of 2016, prices rose less for food and non-alcoholic beverages (8.47 percent compared to 11.50 percent in September); clothing and footwear (2.92 percent compared to 3.47 percent) and miscellaneous goods and services (3.29 percent compared to 3.34 percent). On the other hand, cost increased more for housing and utilities (3.58 percent compared to 3.27 percent); furnishings and household equipment (3.19 percent compared to 2.95 percent); transport (3.78 percent compared to 3.29 percent); restaurant and hotels (5.96 percent compared to 5.16 percent); communication (0.40 percent compared to 0.36 percent) and education (3.14 percent compared to 3.04 percent). 

On a monthly basis, consumer prices decreased 0.63 percent, following a 0.57 percent fall in the previous month. Cost declined faster for food and non-alcoholic beverages (-1.78 percent compared to -1.28 percent in September), namely carrots, cabbages, oranges, onions and wheat. In contrast, cost of housing and utilities rebounded (0.47 percent compared to -0.16 percent), due to electricity (4.06 percent compared to -7.07 percent) and cost rose faster for transport (0.86 percent compared to 0.70 percent), as a result of an increase in prices of diesel (2.22 percent compared to 1.15 percent) and petrol (3.63 percent compared to 2.29 percent).

Kenya Inflation Rate Slows to 5.72% in October


Kenya National Bureau of Statistics | Stefanie Moya | stefanie.moya@tradingeconomics.com
10/31/2017 1:30:10 PM