Inflation Highlights - August 2025

Kenya’s overall inflation rate in August 2025 stood at 4.5 per cent, up from 4.1 per cent recorded in July. The data from the Central Bank of Kenya shows a sharp contrast between core and non-core drivers of inflation.

Core inflation, which reflects long-term price changes, registered at 3 per cent. Key items pushing up prices in this category included fortified maize flour (18.7 per cent), sugar (17.9 per cent), cigarettes (8.7 per cent), cooking oil (4.2 per cent), wheat flour (2.2 per cent), and beans (0.7 per cent).

Non-core inflation, often shaped by seasonal and supply-side factors, rose more steeply at 9.2 per cent. The biggest surge came from tomatoes, which soared by 38.3 per cent.

Other significant contributors included sukuma wiki (17 per cent), bus and matatu fares (15.4 per cent), electricity (200 kilowatts) at 3.7 per cent, electricity (50 kilowatts) at 2 per cent, and petrol at 1.6 per cent.

The CBK notes that non-core inflation is largely driven by weather patterns and international oil price fluctuations.

With food and transport among the heaviest weighted household expenses, the rise in these categories continues to pressure household budgets despite overall inflation remaining moderate.