Kenya’s inflation quickened in October on rising fuel prices
Kenya's annual inflation rate experienced a slight uptick in October, primarily driven by increases in prices for fuel, transportation, and food, as per data released by the country's statistics agency, the Kenya National Bureau of Statistics.
Inflation reached 6.9% year-on-year in October, marking a modest rise from the 6.8% recorded in the previous month. On a month-on-month basis, the inflation rate remained at 1.0%, consistent with the figure for September.
In mid-October, the Energy and Petroleum Regulatory Authority in Kenya announced an impending price hike for petrol, diesel, and kerosene for the following month. Fuel prices have a significant impact on inflation in Kenya due to the nation's heavy reliance on diesel for transportation, power generation, and agriculture. Additionally, kerosene is commonly used in many households for cooking and lighting.
Key Takeaways
In recent months, the African continent, much like the rest of the world, has faced significant challenges related to inflation—driven mostly by food and fuel prices. Particularly in Eastern and Southern Africa, inflation rates reached a peak at 19.4% year-on-year in November 2022. Subsequently, these inflationary pressures have embarked on a gradual and challenging deceleration. By July 2023, the regional inflation rate had dropped to 15.5%, marking a decline from a renewed peak of 20.6% observed in June but still considerably high, according to data from BNP Paribas. According to Kenya’s statistics office, the Housing, Water, Electricity, Gas, and Other Fuels index increased by 1.9% in October compared to the previous month, while the Food and Non-Alcoholic Beverages Index saw a 1.3% rise from September. The Transport Index also increased by 1.5%, as reported by the statistics office.
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