Kenya Inflation Rate Eases to 4.73%


Consumer prices in Kenya increased 4.73 percent year-on-year in November of 2017, easing from a 5.72 percent rise in the previous month and below market expectations of 5.5 percent gain. It was the lowest inflation rate since May 2013 amid a slowdown in food cost, mostly due to more favorable weather conditions. Higher prices were recorded for housing utilities, due to rising house rents, electricity and other cooking fuels.

Compared to November of 2016, prices rose at a softer pace for food and non-alcoholic beverages (5.79 percent from 8.47 percent); furnishings and household equipment (3.02 percent from 3.19 percent) and restaurant and hotels (5.89 percent from 5.96 percent). Also, cost of clothing and footwear slowed marginally to 2.91 percent compared to 2.92 percent. Prices rose at the same pace as in the previous month for education (3.14 percent). On the contrary, inflation went up for housing and utilities (5.27 from 3.58); transport (3.81 percent from 3.78 percent); miscellaneous goods and services (3.61 percent from 3.29 percent) and communication (0.45 percent from 0.40 percent).

On a monthly basis, consumer prices decreased 0.23 percent, less than a 0.63 percent fall in the previous month. Cost declined slower for food and non-alcoholic beverages (-1.33 percent from -1.78 percent), namely carrots, cabbages, tomatoes and spinach. Cost of transport slowed to 0.58 percent, compared to 0.86 percent, although prices of diesel increased to 4.12 percent from 2.22 percent. In contrast, cost of housing utilities increased to 1.74 percent from 0.47 percent, mostly due to higher prices of electricity (4.96 percent from 4.06 percent). 

Kenya Inflation Rate Eases to 4.73%


Kenya National Bureau of Statistics | Marta Dubiel | marta.dubiel@tradingeconomics.com
12/1/2017 5:28:08 PM