Kenya: Inflation picks up after three consecutive months of decline
March 29, 2019
Consumer prices rose 1.60% over the previous month in March, following a 0.82% month-on-month increase in February. An upsurge in prices for food and non-alcoholic beverages spearheaded the climb in overall prices, offsetting a drop in prices for housing, water, electricity, gas and other fuels, and recreation and culture.
Inflation also picked up, rising to 4.4% in March, from 4.1% in February. However, it remained well within the Central Bank’s 2.5%–7.5% target band. Higher food prices have pushed up inflation, although the rising price pressures should be temporary given the delayed advent of the rainy season that should boost agricultural output going forward. Meanwhile, annual average inflation remained at February’s 4.7% in March.
Author: Nihad Ahmed, Economist