Producer prices in Kenya increased 0.49 percent year-on-year in the third quarter of 2019, following a 1.35 percent rise in the previous three-month period, amid declines in prices of food products (-1.51 percent vs -0.58 percent in Q2); wood & wood products (-3.26 percent vs 22.49 percent) and chemicals (-0.94 percent vs -1.30 percent). In contrast, cost rose further for basic metals (4.43 percent vs 4.23 percent) and mining & quarrying (4.40 percent vs 2.27 percent) while it rebounded for electricity (5.46 percent vs -1.03 percent). On a quarterly basis, producer prices dropped 0.2 percent, after increasing 1.72 percent in the preceding quarter. Producer Prices Change in Kenya averaged 1.87 percent from 2012 until 2019, reaching an all time high of 6.77 percent in the fourth quarter of 2015 and a record low of -2.76 percent in the third quarter of 2016.
Producer Prices Change in Kenya is expected to be -0.30 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Producer Prices Change in Kenya to stand at 3.00 in 12 months time. In the long-term, the Kenya Producer Prices Change is projected to trend around 2.50 percent in 2020, according to our econometric models.