Kenya: Inflation drops to a near four-year low in June
Inflation dropped to 4.6% in June, following May’s 5.0%. June’s result represented the weakest inflation rate since September 2020. Looking at the details of the release, the slowdown was broad-based, with moderating price pressures for food and non-alcoholic beverages, housing and transportation.
Accordingly, the trend pointed down, with annual average inflation coming in at 6.2% in June (May: 6.5%).
Lastly, consumer prices rose 0.42% in June over the previous month, below the 0.90% rise seen in May.
Oxford Economics’ Shani Smit-Lengton commented:
“Kenya will receive above-average rainfall in the period June to September, which could lead to further flooding during the country’s primary growing season (June-September). We have already warned that the recent floods, which occurred during the country’s main planting season (mid-March to the end of May), could lead to a delayed harvest or lower crop yields in the second half of 2024, suggesting that additional flooding could exacerbate the current situation.”