Kenya: Inflation declines to lowest level in three and a half years in April
Inflation came in at 5.0% in April—matching the Central Bank’s target—down from March’s 5.7% and surprising markets on the downside. April’s result marked the weakest inflation rate since October 2020. The decline was broad-based, with reduced price pressures for food and non-alcoholic beverages, housing, water, electricity, gas and other fuels, and transportation.
Accordingly, the trend pointed down, with annual average inflation coming in at 6.7% in April (March: 7.0%).
Finally, consumer prices fell 0.19% over the previous month in April, contrasting March’s 0.23% increase. April’s result marked the weakest reading since June 2020.
Oxford Economics’ Shani Smit-Lengton commented:
“Kenya is benefiting from an increase in rainfall, which has helped replenish domestic food stocks and, in turn, lower food prices. The East African nation is also gaining from a smaller import bill for food due to a strengthening in the Kenyan shilling and a decline in key commodity prices, notably for wheat.”