Kenya’s overall inflation rate eased to 3.0% in June 2025, marking a decline from 3.8% recorded in May, according to new data released by the Kenya National Bureau of Statistics (KNBS). However, sharp price hikes in key food items, fuel, and tobacco products are squeezing household budgets despite the broader slowdown.
The inflation figures measure price changes between June 2025 and June 2024. Core inflation, which excludes volatile food and energy items, remained stable, with the core Consumer Price Index (CPI) accounting for 81.1% of the overall CPI.
Among the steepest increases, cigarette prices jumped by 24.9%, making tobacco the most heavily impacted category. Food items followed closely, with sifted maize flour up by 18.8%, carrots by 20.6%, and cabbages by 17.3%. Sugar rose by 9.2%, while cooking oil registered a 6.4% hike. Wheat flour prices climbed 6.6%.
Fuel costs also edged up. Petrol increased by 6.4%, and diesel by 5.7%. Electricity costs showed a mixed trend 200 kilowatts saw a 3.8% rise, while the cost for 50 kilowatts went up by 3.0%. White bread and fresh packet cow milk recorded moderate increases of 1.6%.
In contrast, the easing of overall inflation suggests price pressures are moderating outside volatile categories. The data reflects ongoing efforts by the Central Bank of Kenya to keep inflation within the government’s target range.
