Kenya inflation eases to 6.4%, first decline since Middle East war

Kenya’s annual inflation rate slowed in June for the first time in four months, offering a measure of relief to households after months of rising living costs driven by food and transport prices.

Data released on Tuesday by the Kenya National Bureau of Statistics showed consumer prices rose 6.4 percent in the 12 months to June, down from 6.7 per cent in May. The figure was also below the 7 percent forecast by economists surveyed by Bloomberg.

The slowdown reflects softer increases in the cost of food and transport, two of the biggest drivers of household spending. Food and non-alcoholic beverages inflation eased to 8.6 percent from 9.4 percent in May, while transport inflation slowed slightly to 16.1 percent from 16.5 percent.

On a monthly basis, consumer prices increased by 0.3 percent in June, a sharp moderation from the 1.6 percent rise recorded in May, suggesting price pressures eased as the quarter drew to a close.

“The annual inflation rate eased to 6.4 per cent in June 2026 from 6.7 percent in the previous month, reflecting slower increases in the prices of transportation and food,” the Kenya National Bureau of Statistics said in its latest Consumer Price Index report.

The agency noted that food, transport, and housing, water, electricity, gas and other fuels remain the largest contributors to inflation because together they account for more than 57 percent of the weight used to calculate the country’s Consumer Price Index.

Inflation measures how much the prices of a fixed basket of goods and services have changed over time. The index is compiled each month using retail price data collected from a representative sample of outlets across 50 urban areas nationwide.

June’s figures mark the first decline in Kenya’s annual inflation rate since February, after inflation accelerated steadily in recent months and reached its highest level since January 2024 in May.

While inflation remains above the levels seen earlier in the year, the latest data suggests the pace of price increases is beginning to moderate, easing some pressure on consumers even as the cost of essential goods and transport remains elevated.