Kenya Inflation Rate Inches Up to 4.95%

The annual inflation rate in Kenya rose to 4.95 percent in October 2019 from 3.83 percent in the previous month. Prices increased faster primarily for food and alcoholic beverages, tobacco & narcotics, largely due to recent tax revisions.
Kenya National Bureau of Statistics | Luisa Carvalho | luisa.carvalho@tradingeconomics.com 10/31/2019 7:00:00 PM
Year-on-year, inflation picked up for food & non-alcoholic beverages (8.74 percent vs 6.31 percent in September) and alcoholic beverages, tobacco & narcotics (7.67 percent vs 6.21 percent), following the recent introduction of a excise tax of 21 percent on cigarettes, wines and spirits, designed to raise sustainable revenues and help bring down the budget deficit as well as fight illicit trade and tax evasion. Prices also rose faster for transport (2.51 percent vs 1.91 percent) and health (1.40 percent vs 1.35 percent).

On the other hand, cost slowed for housing & utilities (0.91 percent vs 0.99 percent); clothing & footwear (1.47 percent vs 1.57 percent); furnishings & household equipment (1.31 percent vs 1.55 percent); restaurants & hotels (1.94 percent vs 2.13 percent); miscellaneous goods & services (1.98 percent vs 2.35 percent); communication (0.71 percent vs 4.46 percent) and recreation & culture (0.34 percent vs 0.38 percent).

On a monthly basis, consumer prices rose 0.28 percent, after decreasing 0.11 percent in the previous month. Main upward pressure stemmed from prices of alcoholic beverages, tobacco & narcotics (1.97 percent vs 0.25 percent), largely due to the cost of cigarettes following the increase in excise tax.

Kenya Inflation Rate Inches Up to 4.95%