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June inflation rate unmoved at 3.8% despite shifting prices

Business · Tania Wanjiku · July 1, 2025
June inflation rate unmoved at 3.8% despite shifting prices
A basket of groceries. PHOTO/Handout
In Summary

Despite these declines, prices of some food items, particularly vegetables, continued to rise. Cabbages and carrots registered significant increases of 10.8 per cent and 11.1 per cent, respectively.

Kenya’s inflation rate remained unchanged at 3.8 per cent in June, bringing a moment of stability after months of fluctuation in consumer prices.

According to the latest monthly report by the Kenya National Bureau of Statistics (KNBS), the annual consumer price inflation, as measured by the Consumer Price Index (CPI), stood at 3.8 per cent in June 2025—the same level recorded in May.

This is the first time in recent months that the rate has held steady.

“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 report.

KNBS Director General Macdonald Obudho attributed the stability in inflation to a drop in the cost of basic household goods.

The prices of key kitchen essentials, including cooking oil (salad), Irish potatoes, electricity and liquefied petroleum gas, all recorded declines in June.

Cooking oil dropped by 0.4 per cent, Irish potatoes by 0.2 per cent, electricity by 1.6 per cent and LPG by 0.2 per cent.

Despite these declines, prices of some food items, particularly vegetables, continued to rise. Cabbages and carrots registered significant increases of 10.8 per cent and 11.1 per cent, respectively.

The surge in vegetable prices is in line with the 6.6 per cent year-on-year rise in the Food and Non-Alcoholic Beverages category, which remains the main driver of overall inflation.

At the same time, the Consumer Price Index rose slightly on a month-on-month basis, climbing from 144.88 in May to 145.58 in June.

This represents a 0.5 per cent increase, indicating that although the headline inflation remained flat, individual commodity prices are still shifting.

KNBS also highlighted the difference between core and non-core inflation. Core inflation, which excludes volatile items like food and fuel, stood at 3.0 per cent in June.

Non-core inflation, which includes more price-sensitive goods and services, was higher at 6.2 per cent.

The report shows that the core index increased modestly from 128.97 in May to 129.47 in June, pointing to ongoing inflationary pressure on stable sectors such as education, healthcare, and ICT.

While the unchanged headline inflation rate might bring a sense of relief to consumers, the price swings in essential commodities highlight the continued challenge of managing household expenses amid mixed trends in the market.

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