Kenyan year-on-year producer inflation hits four-year low

Source: Xinhua | 2018-07-05

The Kenyan year-on-year producer inflation declined from 6.39 percent in June 2017 to a record 0.65 percent in June, a four-year low, the government statistics office said Wednesday.

The steep drop followed a decline in prices of various food items and other basic commodities during the period.

"The decline in the index was mainly due to lower costs of maize flour, wheat flour and sugar, said the Kenyan National Bureau of Statistics (KNBS).

KNBS noted producer inflation has been on the decline since June 2017 before hitting the lowest level in four years last month. In the quarter ending September 2017, producer inflation stood at 5.46 percent, dropping to 3.18 percent in December and 1.53 percent in March 2018.

The producer price index measures the gross changes in the trading price of products on the domestic and non-domestic markets, at all stages of processing.