Kenya's Inflation Rate Eases to 3.8% in May Driven by Moderating Food and Transport Costs

Nairobi, Kenya – Kenya's consumer inflation rate saw a notable decrease in May 2025, slowing to 3.8% year-on-year, down from the 4.1% recorded in April. Official data released by the Kenya National Bureau of Statistics (KNBS) on May 30 attributed this moderation primarily to smaller increases in the prices of food and transport, two key components of the consumer price index.

Detailed Breakdown

According to the KNBS report, food prices rose by 6.3% on a year-on-year basis in May, a slower pace compared to previous months. Similarly, transport inflation was recorded at 2.3%. The overall month-on-month inflation was a modest 0.5%, indicating a relatively stable price environment during May.

Economic Outlook and Policy Implications

The current inflation rate remains comfortably within the Central Bank of Kenya’s (CBK) target band of 2.5% to 7.5%. Economists had largely anticipated this drop, citing base effects from the previous year and seasonal factors that typically ease food costs during this period. The CBK’s Monetary Policy Committee (MPC) is expected to carefully consider this latest inflation data ahead of its upcoming meeting in June. Some analysts suggest that if inflation continues to remain low and stable, it might influence the MPC's decisions regarding the benchmark interest rate, potentially providing room for accommodative monetary policy if deemed necessary to support economic activity.