Kenya Annual Inflation rises to 4.6 percent in September 2025 Food Prices Remain Key Driver
October 11, 2025
The Kenya National Bureau of Statistics (KNBS) has released the Consumer Price Index (CPI) and Inflation Report for September 2025, revealing that the annual consumer price inflation rate stood at 4.6 per cent. This figure represents a noteworthy moderation in overall inflation but underscores persistent pressure in key household spending categories.
Key Drivers of Annual Inflation
The overall 4.6 per cent annual inflation figure was primarily fueled by significant price hikes across three major divisions of the CPI basket:
- Food and Non-Alcoholic Beverages: This division saw the most substantial increase, surging by 8.4 per cent year-on-year. This volatility in food prices continues to be the dominant factor affecting the cost of living for most Kenyans.
- Transport: The Transport division experienced a rise of 4.0 per cent, likely reflecting fluctuations in global fuel prices and domestic transportation costs.
Housing, Water, Electricity, Gas, and Other Fuels: Prices in this essential division increased by 1.4 per cent, contributing less to the overall inflation rate compared to food and transport.
Monthly Price Movements and CPI Data
Comparing price changes between August 2025 and September 2025, the monthly inflation rate was a marginal 0.2 per cent.
The CPI, a measure of the weighted average of prices of a basket of consumer goods and services, increased slightly:
Core vs. Non-Core Inflation Analysis
A deeper look at the data reveals a disparity between underlying and volatile inflation measures:
- Core Inflation (which excludes volatile items like food and energy) stood at 2.9 per cent. This relatively lower figure suggests that price stability outside the food and energy sectors is moderate.
Non-Core Inflation (driven by the volatile food and energy components) was significantly higher at 9.6 per cent, highlighting the intense, immediate impact of these specific prices on household budgets.
Noteworthy Commodity Price Changes
The report also detailed specific movements in the prices of staple and essential commodities:
The drop in prices for key staples like maize flour and diesel offers some relief to consumers, while the sharp increases in commodities such as cabbages and charcoal indicate pressures in fresh produce and alternative energy sources.
Conclusion and Outlook
While the annual inflation figure of 4.6 per cent remains within the Central Bank's target range, the persistent high inflation in the Food and Non-Alcoholic Beverages division remains a key concern. The data confirms that rising food costs, rather than broad-based price pressures (as suggested by the low Core Inflation), are currently the primary challenge to the cost of living in Kenya. Future inflation trends will largely depend on weather patterns affecting agricultural yields and global commodity prices, particularly fuel.
How Inflation Affects Your Money:
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Notes and References
Posted by: Yuthufu