PRODUCER PRICE INDICES QUARTER 2 2026
Kenya National Bureau of Statistics

PRODUCER PRICE INDICES QUARTER 2 2026

Reference period: June 2026 · Base: March 2019 = 100 · Source: KNBS Producer Price Indices, Second Quarter 2026 Release

📊 Executive Summary

Headline figures for the year ending June 2026.

Producer Inflation (y/y)
1.43% ↑
Producer Price Index
140.19
Previous Quarter (Mar 2026)
134.15
Quarterly Change (q/q)
+4.47%

Source: KNBS, Table 1 — Overall PPI and Inflation Rates, March 2023–June 2026.

🏭 What is Producer Price Index and Producer Inflation?

In the report's own words, explained simply.

📇 Producer Price Index (PPI) The publication defines the PPI as a measure of how prices received by producers — factories, mines, and utility companies — change over time. In simple terms, it's a single running score for producer prices across the economy. The Producer Price Index uses March 2019 as its base period, where the index is set at 100. By June 2026, the index had risen to 140.19, meaning producers were, on average, receiving about 40% more for their goods and services than they were in March 2019.
⏱ Producer Inflation The report describes producer inflation as a key indicator of producer-level inflation in the economy — simply how much that PPI score has changed compared with a year earlier, shown as a percentage. In June 2026, producer inflation was 1.43%, meaning the score was 1.43% higher than it stood twelve months before.
Think of the PPI Index like an odometer, showing overall distance travelled, and Producer Inflation like a speedometer, showing how fast things are moving right now. The index (140.19) tells you where producer prices stand overall; the inflation rate (1.43%) tells you how quickly they're changing compared with a year ago.

📈 Trend Over Time

Producer Inflation and the Overall PPI, March 2023 → June 2026.

Highest point13.66% — Mar 2023
Lowest point-5.67% — Mar 2025
Current value1.43% — Jun 2026

Producer inflation was negative through much of 2024–2025 before turning positive again in June 2026.

Source: KNBS, Table 1.

🏗️ Which Industries are Driving Inflation?

Year-on-year producer price change by major sector, June 2026.

Increasing Decreasing

Hover any bar for a plain-language explanation.

Source: KNBS, Table 2 — Year-on-Year Industrial Producer Inflation by Sector.

🙋 What Does This Mean for Me?

Sector figures translated into everyday terms.

🚀 Biggest Movers

Sub-sectors with the largest price swings.

⬆ Largest Increases

    ⬇ Largest Declines

      Source: KNBS, Table 4 — Percentage Changes of PPI over a Quarter and a Year Ago.

      🔎 Interactive Industry Explorer

      Choose an industry to see its own price story.

      Source: KNBS, Tables 2–5.

      💡 FAQ

      Why should I care?

      If factories pay more to produce goods today, supermarkets may charge more later. Watching producer prices gives an early hint of where consumer prices could be headed.

      Does producer inflation mean prices in shops increase immediately?

      No. Sometimes businesses absorb higher costs to stay competitive. Sometimes the higher costs are passed to consumers only after several months.

      What is the effect of falling electricity producer prices?

      Producer prices in the electricity sector decreased by 7.58% over the year (and 4.77% over the latest quarter), which can help reduce production costs for electricity-dependent industries.

      Did you know?

      Producer prices often change before consumer prices, making the PPI an early-warning indicator of future inflation.

      What if paper manufacturing costs keep rising?

      Paper and paper products producer prices rose 15.73% over the year. If sustained, products such as books, newspapers, packaging and stationery may gradually become more expensive.

      📖 What Happened This Quarter?

      Producer prices increased by 4.47% between March and June 2026. Manufacturing (+5.46%) and Mining and Quarrying (+5.52%) recorded notable quarterly increases, while Electricity prices declined (-4.77%). Overall annual producer inflation stood at a modest 1.43%, with Water Supply (+11.86% y/y) and Paper products (+15.73% y/y) posting the largest annual gains, while Electricity (-7.58% y/y) posted the largest annual decline.

      Built from KNBS "Producer Price Indices — Second Quarter 2026 Release" (published June 2026). All figures traceable to Tables 1–5 of that report. This dashboard adds plain-language interpretation; it is not an official KNBS product.
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