Inflation hits three-year high of 7.3 per cent in October on rising fuel prices

Inflation hits three-year high of 7.3 per cent in October on rising fuel prices

Transport recorded the sharpest monthly increase among the major expenditure categories, rising by 1.7 per cent between September and October, largely driven by higher fuel prices.

Kenya’s inflation rate climbed to a three-year high of 7.3 per cent in October, up from 6.8 per cent in September, as rising fuel, food and transport costs increased pressure on household budgets.

The latest reading marks the highest inflation level since July 2023, signalling renewed cost-of-living pressures for households as prices of essential commodities and energy products continue to rise.

According to the Kenya National Bureau of Statistics (KNBS), transport recorded the sharpest monthly increase among the major expenditure categories, rising by 1.7 per cent between September and October, largely driven by higher fuel prices.

Petrol prices increased by six per cent to Sh227.85 per litre, while diesel rose by 4.4 per cent to Sh228.77. Kerosene recorded an even steeper increase of 14.7 per cent, with a litre retailing at Sh220.88, up from Sh192.56 in September.

Food and non-alcoholic beverages prices increased by 0.9 per cent during the month, adding to the pressure on consumers.

Fresh packeted cow milk recorded a 4.7 per cent increase to Sh64.13 for a 500ml packet, while cabbage prices rose to Sh82.38 per kilogramme from Sh79.16.

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The cost of cooking oil also edged up to Sh361.04 per litre, while Irish potatoes became 2.5 per cent more expensive.

However, sugar prices declined by 1.2 per cent, while maize flour and oranges each dropped by 1.1 per cent.

Housing, water, electricity, gas and other fuels recorded a 0.8 per cent increase, with kerosene and cooking gas prices contributing to the rise.

A 13kg cylinder of LPG increased marginally to Sh3,429.61.

On an annual basis, the record means the general price level was 7.3 per cent higher in October 2026 than in October 2025, reflecting sustained increases in the cost of essential goods and services.

KNBS attributes the annual increase mainly to higher prices in three major expenditure categories, with food and non-alcoholic beverages rising by 10.2 per cent, transport by 17.1 per cent and housing, water, electricity, gas and other fuels by 3.7 per cent.

The three categories account for more than 57 per cent of the total weight in the consumer price index, making their movements particularly influential on overall inflation.

Meanwhile, core inflation, which excludes more volatile commodities, increased to 4.3 per cent in October from 4 per cent in September.

Non-core inflation, which captures more volatile items including food and energy, rose more sharply to 15.1 per cent from 14 per cent, highlighting the growing contribution of fuel and other volatile prices to the overall increase.