Kenya Inflation Rate Slows to 5-Month Low in August


The annual inflation rate in Kenya decreased to 4.04 percent in August of 2018 from 4.35 percent in the previous month and above market expectations of a 4.35 percent gain. It was the lowest inflation rate since March, mainly due to a fall in prices of food and non-alcoholic beverages.

Year-on-year, cost of  food and non-alcoholic beverages declined by 1.15 percent, after rising 0.53 percent in July. Also, prices eased for furnishings and household equipment (4.63 percent compared to 4.66 percent); health (5.69 percent compared to 6.18 percent) and communications (0.62 percent compared to 0.82 percent). In contrast, prices advanced faster for housing & utilities (16.70 percent compared to 14.40 percent); transport (9.37 percent compared to 8.45 percent); clothing & footwear (4.17 percent compared to 4.10 percent); miscellanous goods & services (4.20 percent compared to 4.01 percent); restaurants & hotels (5.0 percent compared to 4.75 percent); recreation & culture (1.55 percent compared to 1.45 percent) and alcoholic beverages & tobacco (5.80 percent compared to 2.86 percent). Additionally, inflation was steady for education (5.11 percent, the same as in July).

On a monthly basis, consumer prices went up 0.31 percent, following a 0.89 percent decrease in July. Cost of food & non-alcoholic beverages dropped at a softer pace (-0.66 percent compared to -2.40 percent). In addition, prices rose faster for housing & utilities (2.56 percent compared to 0.12 percent), due to higher cost of electricity (6.6 percent) and transport (0.87 percent compared to 0.62 percent), driven by an increase in the pump price of petrol (1.3 percent).

Kenya Inflation Rate Slows to 5-Month Low in August


Stefanie Moya | stefanie.moya@tradingeconomics.com
8/31/2018 12:56:18 PM