Kenya Inflation Slows to 6.35% In December


Consumer prices in Kenya increased 6.35 percent year-on-year in December of 2016, following a 6.68 percent rise in the previous month but above market expectations of a 6.24 percent gain. Prices slowed for housing and utilities and transport but food inflation rose slightly.

Compared to December of 2015, prices increased at a slower pace for: furnishing and household equipment (+3.26 percent from +3.37 percent), clothing and footwear (+4.38 percent from +4.65 percent), transports (+0.29 percent from +1.29 percent), alcoholic drinks, tobacco and narcotics (+2.73 percent from +13.96 percent), restaurants and hotels (+4.98 percent from +5.77 percent), recreation and culture (+4.41 percent from +4.47 percent) and housing and utilities (+0.06 percent from +0.2 percent). Meantime, cost rose faster for food and non-alcoholic drinks (+11.22 percent compared to +11.13 percent).

Month-on-month, consumer prices increased 0.76 percent following a 0.71 percent gain in November.
Cost went up the most for food and non-alcoholic beverages (+1.31 percent from +1.17 percent in November), namely fruits and vegetables and alcoholic beverages, tobacco and narcotics (+0.47 percent from +0.11 percent). In addition, prices rose for housing, water, electricity, gas and other fuels (+0.41 percent from +0.11 percent) mainly due to increases in electricity, house rents and kerosene. Additional upward pressure came from transport (+0.49 percent from +0.55 percent), boosted by jump in petrol and diesel prices and higher bus fares associated with Christmas festivities, clothing and footwear (+0.79 percent from +0.7 percent) and miscellaneous goods and services (+0.64 percent from +0.09 percent).

Kenya National Bureau of Statistics | Deborah Neves | deborah.neves@tradingeconomics.com
12/29/2016 6:03:34 PM