Kenya Inflation Up More Than Expected in June at 6.32%

The Kenya National Bureau of Statistics (KNBS) said the overall year on year inflation rate as measured by the Consumer Price Index

A fruit seller in one of Kenya's informal markets

Kenya consumer prices rose by more than expected in June as fuel goods and services costs surged during the month, the statistics body said Wednesday.  

Data by the Kenya National Bureau of Statistics (KNBS) showed an overall rate of inflation in June at 6.32 per cent, compared to the 5.87 per cent recorded in May. This was a 16 month high similar to February 2021.

“The increase was mainly driven by rise in prices for commodities under: food and non-alcoholic beverages; housing, water, electricity, gas and other fuels; and transport between June 2020 and June 2021,” said Macdonald G. Obudho, KNBS Director-General in a statement. 

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 per cent in May 2021. 

Consequently, the Central Bank of Kenya has maintained an accommodative policy stance by keeping the Central Bank Rate at 7 per cent. 

According to June data, the Consumer Price Index (CPI) increased by 0.12 per cent from 114.977 in May to 115.110.

The Housing, Water, Electricity, Gas and Other Fuels’ Index, increased by 0.18 per cent between May 2021 and June 2021.

The Transport Index increased by 0.28 per cent, attributed to an increase in prices of petrol, which went up by 0.61 per cent between May 2021 and June 2021.