Kenya Takes Bold Step in Inflation Monitoring: Government Launches Comprehensive Report
The Mt Kenya Times 
Government unveiled its inaugural report on Core and Non-Core Inflation Measures.
By Cynthia Masibo
Today marked a historic milestone in Kenya’s economic landscape as the government unveiled its inaugural report on Core and Non-Core Inflation Measures. The event, held at the in Nairobi, was officiated by Principal Secretary Chris Muhati, signaling a renewed commitment to enhancing economic transparency and addressing inflationary challenges.
The meeting, which brought together top economic leaders, saw the participation of Central Bank of Kenya (CBK) Governor Dr. Kamau Thugge, Kenya National Bureau of Statistics (KNBS) Director-General Dr. Macdonald Obudho, and CBK’s Director of Research, Prof. Robert Mudida. The trio emphasized the importance of the report in enabling more precise and data-driven responses to inflation, which remains a key economic concern for Kenyans.
In his address, PS Muhati highlighted the significance of the report in providing comprehensive insights into the country’s inflation dynamics. “This report marks a critical step in our journey toward improving economic decision-making. By distinguishing between core and non-core inflation, we are equipping policymakers and stakeholders with the tools to address inflationary pressures effectively,” he stated.
Core inflation, which excludes volatile items such as food and energy prices, reflects the underlying inflation trend, while non-core inflation considers all components, including the often-fluctuating costs of essential commodities. The government’s focus on these measures aims to ensure a more nuanced understanding of inflation and its drivers.
Dr. Thugge underscored the need for timely and accurate data, noting that the report will be released monthly. “This initiative aligns with our broader vision of fostering economic stability. With regular updates, we can anticipate inflationary pressures and implement proactive measures to safeguard our economy,” he said.
The report’s launch comes at a time when Kenyans are grappling with rising living costs, partly driven by global economic disruptions and domestic factors. The statistics provided in the report will not only aid policymakers but also offer businesses and households a clearer picture of inflationary trends, enabling better planning and decision-making.
KNBS DG Dr. Obudho reiterated the institution’s commitment to delivering reliable data. “Accurate and timely statistics are crucial for effective policy formulation. Our collaboration with the CBK and other stakeholders ensures the robustness of this report,” he said.
Prof. Mudida, the architect behind the research department’s efforts at CBK, emphasized the need for economic resilience. “Understanding the drivers of inflation is key to fostering a stable economic environment. This report provides the analytical framework needed to achieve that,” he noted.
The resolution to release the report monthly represents a strategic move by the government to enhance economic accountability and foster public trust. It is also expected to facilitate better communication with international partners and investors, highlighting Kenya’s commitment to tackling economic challenges head-on.
Experts have welcomed the initiative, calling it a progressive step in addressing the complexities of inflation. However, they caution that the data must be accompanied by actionable policies to cushion citizens from the adverse effects of rising prices.
As the government rolls out this initiative, all eyes will be on subsequent reports and the measures implemented to ensure that inflation remains within manageable levels. For many Kenyans, today’s launch represents hope for a more stable economic future driven by informed decision-making.
The event concluded with a commitment to strengthening collaboration among economic stakeholders, setting the stage for a more transparent and resilient Kenyan economy.
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