{
  "id": 15881235,
  "title": "CBK: Why cost of living can stay high even when inflation is expected to stabilise",
  "url": "https://urgent.news/2026/10/21/cbk-why-cost-of-living-can-stay-high-even-when-inflation-is-expected",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-21T11:35:42.000Z",
  "source": {
    "name": "People Daily Kenya",
    "slug": "people-daily-kenya",
    "url": "https://peopledaily.digital/business/cbk-why-cost-of-living-can-stay-high-even-when-inflation-is-expected-to-stabilise"
  },
  "original_language": "en",
  "account": "The Central Bank of Kenya's latest Market Perceptions Survey suggests that even as inflation stabilises, Kenyans can still expect higher costs of living. This is because inflation represents the rate at which prices rise over time, not necessarily the actual prices themselves. The survey found businesses foresee slightly higher inflation over the next three months, primarily due to food supply issues, rising fuel and transport costs, and global economic disruptions. However, they anticipate inflation to stay within the central bank's target range in the medium term, helped by stable exchange rates, better agricultural production, and favourable supply-side factors.\n\nWhile slowing inflation means prices rise more slowly, it doesn't mean they're falling. Food prices, in particular, may remain high even if inflation eases. This is because previous price increases cannot be undone simply by inflation moderation. Kenyan households might be paying more for the same groceries than they were a year ago. The main drivers of near-term inflation include food supply constraints, higher fuel and energy prices, and rising transport costs, which are interconnected. Higher fuel prices, for example, can increase transportation and distribution costs for businesses, which may pass these expenses onto consumers.\n\nAgriculture plays a crucial role in Kenya's cost-of-living situation. Food price pressures are expected to persist due to supply challenges, lower output during the long-rains season, and distribution issues. However, improved agricultural output from better rainfall and farm subsidies could help moderate food prices in the medium term. Yet, this depends on factors like weather conditions, farm production, transport disruptions, and distribution efficiency. Kenya's reliance on imported goods also impacts domestic prices. The survey believes stable exchange rates and sufficient foreign exchange reserves can help curb imported inflation. Global oil prices stabilising and the central bank's monetary policy stance could also help temper inflation.\n\nNonetheless, the CBK warns that global commodity price shifts, weather-related shocks, and geopolitical uncertainties remain risks to the medium-term inflation outlook. This means even if inflation stabilises, households may still be facing higher costs for their daily necessities.",
  "summary": "Kenyans hoping that stabilising inflation will automatically translate into cheaper groceries, lower transport fares and smaller household bills may have to wait. The Central Bank of Kenya’s September 2026 Market Perceptions Survey explains why inflation can moderate over time while the cost of living remains a burden. The survey found that businesses expected inflation to […]",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}