Kenya’s inflation experienced a decline in September.
As reported by Bloomberg, the decline in inflation is largely attributed to slower growth in food and energy prices, with annual inflation reaching its lowest point in nearly 12 years.
In September, consumer prices grew by 3.6% compared to the previous year, marking the lowest level since December 2012, according to a government statement.
This drop from 4.4% in August was even lower than the 4.3% median projection of economists surveyed by Bloomberg, while prices rose by just 0.2% on a monthly basis.
Bloomberg reported that prices of food and non-alcoholic beverages, which account for a third of the inflation basket, increased by 5.1% from a year ago—the slowest rate since December 2020. Corn yields, Kenya’s staple crop, are projected to rise by 5.2% this year, helping stabilize food prices.
Earlier in 2024, the inflation rate hit 6.3% in February, dropping further to 5.7% in March and to 5.0% in both April and May, before declining to 4.6% in June. This represents a significant improvement from the peak inflation rate of 9.2% recorded in 2023.
Additionally, in April, the World Bank ranked the Kenyan Shilling as the world’s best-performing currency, a notable improvement from its struggles the previous year.
However, by July, economic disruptions caused by protests led to underperformance, with the Shilling trading at Sh131.574 against the US dollar.
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