Kenya's Annual Inflation Rate Accelerates to 5% in October

(Bloomberg) --

Kenya’s consumer price index rose by 5% in October from a year ago, accelerating from 3.8% in the previous month after food prices increased.

The inflation rate rose to 3% in the month, the Kenya National Bureau of Statistics said Thursday in a statement emailed from the capital, Nairobi. Food prices, which count for 36% of the index, climbed 8.7%, while the transport index rose 2.5%.

Key Insights

  • Kenya’s headline inflation averaged 5.2% in the twelve months to September, within the 2.5% to 7.5% target, due to lower energy prices, which offset temporary pressure from rising food prices in the first half, according to the World Bank.
  • Core inflation, which excludes food and fuel prices, has stayed below 5% in the past three years, reflecting subdued demand pressures in the economy, spillover effects of an excise tax and recent increase in fuel prices, according to the National Treasury.
  • Erratic weather-related shocks that could hurt electricity generation and agricultural output may lead to higher inflation and slower economic growth.

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