Kenya’s Overall Inflation Drops to 3.83 pct in September

The rate of inflation has been on the rise since the fourth quarter of 2020, driven by rising food and international oil prices, reaching 5.9 percent in May 2021.

A fruit seller in one of Kenya's informal markets

Kenya’s overall inflation rate fell to 3.83 percent in September, down from 5.00 percent in August, due to lower foodstuff prices, the statistics bureau said on Monday.

The Kenya National Bureau of Statistics (KNBS)  attributed the decrease in the headline rate to a drop-in price of food, soft drinks and electricity.

“For instance, in September 2019 prices of carrots, cabbages and tomatoes decreased by 9.80, 6.32 and 4.14 percent, respectively,” KNBS says.

“Towards the end of the year, we expect inflation to hold below 5.00% anchored by subdued food prices and favourable base effects. Moreover, muted demand-side pressures should sustain low consumer spending particularly on luxury goods,” comment from CBA Economic Analysts.