Inflation rate holds steady at 3.8 per cent in June

Kenya’s inflation rate held steady at 3.8 per cent in June, marking the first time in recent months that the rate has neither risen nor fallen.

“The Kenya National Bureau of Statistics (KNBS) produces the Consumer Price Indices (CPI) and inflation rates report on a monthly basis. Annual consumer price inflation as measured by the Consumer Price Index (CPI) was 3.8 per cent in June 2025,” read the monthly Bureau's report.

KNBS Director General Macdonald Obudho attributed the stable inflation to lower prices of essential household commodities.

The cost of cooking oil (salad) declined by 0.4 per cent, while Irish potatoes fell by 0.2 per cent. Electricity, LPG gas also recorded a decrease of 1.6 and 0.2 per cent, respectively.

However, in contrast, cabbages and carrots saw sharp price increases of 10.8 per cent and 11.1 per cent, respectively.

The steep rise in vegetable costs is consistent with the overall 6.6 per cent year-on-year increase in the Food and Non-Alcoholic Beverages category, which remains the biggest contributor to annual inflation.

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The report also shows a general month-on-month increase in the Consumer Price Index, rising from 144.88 in May to 145.58 in June, a 0.5 per cent change.

While the overall inflation rate held steady at 3.8 per cent, the monthly movement signals continued shifts in individual commodity prices, with some easing and others escalating.

KNBS further noted that core inflation, which excludes volatile items such as food and fuel, was 3.0 per cent in June. Non-core inflation, on the other hand, was much higher at 6.2 per cent.

The core index rose from 128.97 in May to 129.47 in June, reflecting modest but persistent inflationary pressure on non-volatile goods and services such as education, health, and ICT.