In October, Kenya’s annual headline inflation quickened to the highest level in three months to 6.9%, albeit still within the Central Bank of Kenya’s (CBK) target range of 5%±2.5%. Meanwhile, on a monthly basis, inflation remained relatively unchanged at 1.0% from September.
A further breakdown of the CPI components showed mixed price movements in annual and monthly food, fuel and transport inflation.
Rising food prices
The chart below shows that year-on-year food inflation slowed to 7.8% in October from 7.9% in September, primarily on base effects. For context, food inflation was 15.78% in October 2022, as Kenya experienced droughts that reduced food supply and spiked food prices last year. Meanwhile, the monthly food sub-index climbed by 1.3% in October from 0.7% in September as the price of essential staples like potatoes and tomatoes increased by 9.6% and 5.4%, respectively.