Kenya: Inflation falls in May as weather conditions improve
May 31, 2019
Consumer prices fell 0.07% over the previous month in May, contrasting a 3.51% month-on-month upturn in April. Lower prices for food and non-alcoholic beverages, along with alcoholic beverages, tobacco and narcotics were behind the decline. Improved weather conditions likely boosted agricultural production and helped push down food prices.
Inflation slid to 5.5% in May from 6.6% in April, which had marked a 19-month high. Thus, inflation moved closer to the mid-point of the Central Bank’s 2.5%–7.5% target range. Lastly, annual average inflation inched up to 5.0% in May from 4.9% in April.
Kenya Inflation Forecast
FocusEconomics Consensus Forecast panelists expect inflation to average 5.2% in 2019, which is down 0.1 percentage points from last month’s forecast. For 2020, the panel sees inflation averaging 5.7%.
Author: Nihad Ahmed, Economist