Higher money supply lifts core inflation to 3 percent

Core inflation is as a result of the improved money supply in the economy, rather than second round or knock-on effects of higher food and fuel prices.

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Kenya’s core inflation rose to a 13-month high of three percent in June 2025, signalling improved consumer spending following the recent cuts in interest rates by the Central Bank of Kenya (CBK).

The Kenya National Bureau of Statistics’ (KNBS) June inflation release showed that core inflation, rose from 2.8 percent in May, even as the headline inflation number that incorporates core and non-core inflation (food and fuel inflation) remained flat at 3.8 percent.

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Note: The results are not exact but very close to the actual.