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    1.0.32

    Marginal Dip in Energy Prices Pushes Inflation Down to 3.8%

    Fred
    By Fred Obura
    - June 03, 2025
    - June 03, 2025
    Kenya Business newsMacroeconomics
    Marginal Dip in Energy Prices Pushes Inflation Down to 3.8%

    Kenya’s inflation rate was lower in May, at 3.8%, compared to 4.1% reported a month earlier, according to statistics from the Kenya National Bureau of Statistics (KNBS).

    • •This is despite the Food and Non-Alcoholic Beverages Index increasing by 1.2% between April 2025 and May 2025.
    • •The prices of sugar, maize flour sifted and kale- Sukuma wiki rose by 4.3, 3.9 and 3.5%, respectively, between April 2025 and May 2025.
    • •The prices of potatoes (Irish), oranges and fresh packeted cow milk dropped by 3.7, 1.8 and 0.6%, respectively.

    “Core inflation contributed 2.7 points while non-core contributed 1.1 points to the overall inflation in May 2025. Food and non-alcoholic beverages contributed to 1.9 points to the overall inflation,” said Macdonald Obudho, KNBS Director General.

    The Housing, Water, Electricity, Gas and Other Fuels’ Index had a negligible change between April 2025 and May 2025. During this period, the price of a 50 kWh unit of electricity and a 200 kWh unit of electricity declined by 1.0% and 0.9%. Further, the price of gas/LPG dropped by 0.5% during the same period.

    The Transport Index rose by 0.2% between April 2025 and May 2025 mainly attributable to increase in prices of international flights. Prices of petrol and diesel remained unchanged in the review period, as presented in Table 3.

    The annual headline inflation is measured by the Consumer Price Index (CPI). The CPI tracks the average change of prices over time and includes a basket of goods and services that people commonly spend on such as food, housing, transportation and medical care.

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