Online Reporter
The latest figures for Kenya’s inflation depict another increase, extending an upward trajectory that began in November last year.
In comparison to August, Kenya’s inflation rate decreased from 4,4 percent to 3,6 percent in September.
Subsequently, the consumer price index eased to 2,7 percent in October 2024.
Since then, the country’s inflation rate has been on a steady increase.
For February, Kenya’s inflation rate rose to 3,5 percent from 3,3 percent in January.
This information was detailed in an email issued on Friday by the Kenyan National Bureau of Statistics, as seen on Bloomberg.
The 2 percent core inflation rate, which excludes energy and the cost of volatile agricultural staples, showed weak demand.
Last year, in February, the country’s inflation hit a 23-month low of 6,3 percent.
By March, the country’s inflation had fallen even further from the figure recorded in February to 5,7 percent.
In April, the inflation rate fell to 5 percent, and in May, the country’s inflation maintained the 5 percent level before declining sharply to 4,6 percent in June.
Since June, Kenya has managed to keep its inflation rate below the 5 percent mark the Central Bank had placed as a target range.
This was a huge win, considering that Kenya’s inflation rate hit an all-time high of 9,2 in 2023.
Additionally, for the fourth consecutive meeting, Kenya’s central bank lowered its main interest rate to 10,75 percent on February 5 and announced plans to take more action to encourage lending and accelerate economic expansion.
“Prices of food and non-alcoholic drinks – which make up a third of the inflation basket – rose 6,4 percent in February from 6,1 percent a month earlier.
Transport costs rose 0,7 percent, similar to January, after the nation left gasoline prices unchanged during the mid-month review,” the Bloomberg report details.
“A drop in global fuel prices bodes well for Kenya, which imports refined petroleum products, and may ease energy prices. Housing, water, electricity, gas and other fuel prices fell 0,8 percent in February from -1,6 percent a month earlier,” it adds.
In November, Kenya’s inflation rate rose to 2,8 percent from 2,7 percent the month prior. In December, the country’s inflation rate went up again, reaching 3 percent.-Business Insider Africa.
