Kenya: Inflation inches up in December, remaining elevated on higher fuel and transport costs
December 31, 2018
Consumer prices rose 0.65% over the previous month in December, contrasting a 0.18% month-on-month decline in November. Prices for transport increased the most, followed by food and non-alcoholic beverages. All sub-components registered higher prices, except for the sub-category of communication for which prices remained stable from the previous month.
Inflation inched up to 5.7% in December, from 5.6% in November, remaining within the Central Bank’s medium-target range of 2.5%–7.5%. Higher fuel and transport costs—mainly owing to the adoption of the 8% VAT on fuel—have kept price pressures elevated. Annual average inflation inched up to 4.7% in December, from 4.6% in November.
Author: Nihad Ahmed, Economist