Kenya Annual Inflation Rate at 11-Month High in September

The annual inflation rate in Kenya increased to 5.7 percent year-on-year in September of 2018 from 4.0 percent in the previous month and above market expectations of 4.95 percent. It was the highest inflation rate since October last year, mainly due to higher cost of transport and food & non-alcoholic beverages. In September, at the beginning of the month a 16 percent tax on petroleum products was introduced, due to the impacts it had the Parliament approved President Uhuru Kenyatta proposal of cut the VAT to 8 percent.

Year-on-year, cost of food and non-alcoholic beverages increased by 0.5 percent, after dropping 1.15 percent in August. Additionally, prices advanced faster for transport (17.29 percent compared to 9.37 percent); housing & utilities (17.44 percent compared to 16.70 percent); clothing & footwear (4.58 percent compared to 4.17 percent); furnishings and household equipment (4.86 percent compared to 4.63 percent); miscellanous goods & services (4.30 percent compared to 4.20 percent); restaurants & hotels (5.04 percent compared to 5.0 percent); health (5.90 percent compared to 5.69 percent);  recreation & culture (1.61 percent compared to 1.55 percent) and alcoholic beverages & tobacco (6.48 percent compared to 5.80 percent). 

On the other hand, prices slowed for communications (0.61 percent compared to 0.62 percent) and  education (5.04 percent compared to 5.11 percent). 

On a monthly basis, consumer prices advanced by 1.02 percent, following a 0.31 percent gain in August. Cost of food & non-alcoholic beverages rebounded (0.37 percent compared to -0.66 percent) boosted by higher prices of some foodstuffs. Also, prices of transport jumped (7.99 percent compared to 0.87 percent), driven by higher cost of petrol (2.6 percent compared to 1.3 percent) and diesel (5.1 percent compared to -0.5 percent). In contrast, prices eased for housing & utilities (0.47 percent compared to 2.56 percent).

Kenya Annual Inflation Rate at 11-Month High in September

Kenya National Bureau of Statistics | Stefanie Moya |
10/1/2018 11:29:51 AM