Price Level of Capital Formation for Kenya
PLICPPKEA670NRUG • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
0.51
Year-over-Year Change
-5.85%
Date Range
1/1/1950 - 1/1/2019
Summary
The Price Level of Capital Formation for Kenya measures the relative prices of capital goods, such as machinery and equipment, in the Kenyan economy. This trend is crucial for understanding investment patterns and productivity growth.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
This index tracks the prices of domestically produced and imported capital goods that are used for fixed investment in Kenya. It serves as an important indicator of the cost environment for businesses and policymakers assessing the country's investment climate.
Methodology
The data is collected by Kenya's National Bureau of Statistics through surveys of producers and importers.
Historical Context
The Price Level of Capital Formation is used by the Central Bank of Kenya and international institutions to monitor inflationary pressures and assess the competitiveness of Kenyan industries.
Key Facts
- Kenya's capital goods prices rose 5.2% in 2021.
- The index has increased by 15% over the past decade.
- Import tariffs account for a significant portion of capital goods prices.
FAQs
Q: What does this economic trend measure?
A: The Price Level of Capital Formation for Kenya measures the relative prices of machinery, equipment, and other capital goods used for investment in the Kenyan economy.
Q: Why is this trend relevant for users or analysts?
A: This index is crucial for understanding investment patterns, production costs, and the competitiveness of Kenyan industries. It provides important insights for policymakers, businesses, and economists analyzing the country's economic development.
Q: How is this data collected or calculated?
A: The data is collected by the Kenyan National Bureau of Statistics through surveys of domestic producers and importers of capital goods.
Q: How is this trend used in economic policy?
A: The Price Level of Capital Formation is used by the Central Bank of Kenya and international institutions to monitor inflationary pressures and assess the competitiveness of Kenyan industries, which informs policymaking decisions.
Q: Are there update delays or limitations?
A: The data is published quarterly, with a typical 2-3 month lag. The index may not fully capture all capital goods due to the challenges of comprehensive data collection in a developing economy.
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Citation
U.S. Federal Reserve, Price Level of Capital Formation for Kenya (PLICPPKEA670NRUG), retrieved from FRED.