By Aoma Keziah,
The Kenya National Bureau of Statistics (KNBS), in partnership with the Central Bank of Kenya (CBK), has launched the inaugural Core and Noncore Inflation Report, aimed at providing a clearer picture of the country’s inflation trends and offering a more precise gauge for policymakers.
In his remarks, PS state department of Economic Planning National Treasury Mr. James Muhati, emphasized the importance of accurate and timely economic data in shaping policies that address inflationary pressures and promote sustainable growth.
“This report will enable the government and the Central Bank to make more effective decisions regarding monetary policy, helping to stabilize prices and protect the purchasing power of Kenyan households.” He said.
He further added that Inflation is a multifaceted phenomenon influenced by numerous factors.
“Traditionally, a single inflation measure has served as a general gauge for price changes, but this approach can obscure critical details. Our objective is not only to respond to inflation but to proactively foster an economic environment where inflationary pressures are minimized, promoting stability and resilience.” Noted PS Muhati.
Dr. Mcdonald Obudho, Director General KNBS highlighted the role of the KNBS in providing reliable statistical data that can guide economic strategies.
“The launch of this report marks a milestone in our mission to improve the quality of economic data and provide critical insights into the factors driving inflation in Kenya.” He remarked.
Governor of the Central Bank of Kenya, Dr. Kamau Ngugi underscored that the Central Bank’s efforts is to manage monetary policy effectively.
“Understanding inflation in both its core and non-core aspects is essential for making precise monetary decisions. The report would help provide more reliable inflation forecasts, which in turn would support the bank’s efforts to stabilize prices and maintain economic growth.” He emphasized.
The report will break down inflation into two categories: core inflation, which excludes volatile food and fuel prices, and noncore inflation, which includes these items. This distinction is expected to offer a clearer understanding of underlying inflationary trends and assist in targeting specific areas for policy intervention.
With inflation concerns being a key issue in Kenya’s economic landscape, the introduction of this report is expected to improve the effectiveness of monetary policies and provide valuable insights to stakeholders across the public and private sectors.
This significant development comes as part of the ongoing efforts to enhance the country’s economic data collection and analysis, facilitating more informed decision making.
Mt Kenya Times 
John Kariuki