Kenya National Bureau of Statistics Rebases CPI and PPI

Press Release – The Central Bank of Kenya (CBK) welcomes the release of three products today by the Kenya National Bureau of Statistics (KNBS): a rebased Consumer Price Index (CPI), a rebased Producer Price Index (PPI) and four Quarterly Labour Reports. These three products are aimed at enhancing the quality of statistics, including the measurement of inflation, upon which policymakers base their decisions. These revisions have been guided by internationally accepted best practices as well as the Common Market for East and Southern Africa (COMESA) and the East African Community Harmonized Consumer Price Index regulations.

The CPI will have a new basket of 330 items, compared to the previous basket of 234 items. Obsolete items in the old basket have been dropped, while new and more relevant items have been included. The weights in the rebased CPI have also been updated and the Expenditure Groups have been recalculated, based on the 2015/16 Kenya Integrated Household Budget Survey. The review of the PPI was to reflect changed production patterns and a new industrial structure.

The Quarterly Labour Force Survey will more accurately measure key labour statistics, including labour force participation, employment and labour utilisation. It is expected that the March 2020 inflation numbers to be released tomorrow (March 31) will reflect the newly rebased CPI.