Kenya’s consumer inflation rate increased to 4.1% year-over-year in July, up from 3.8% the previous month, according to the Kenya National Bureau of Statistics.
The rise in inflation was primarily driven by increased prices of essential goods and services, including food and non-alcoholic beverages, transport, housing, and utilities.
Monthly inflation, however, remained low at 0.1% in July, down from 0.5% in June.
The Central Bank of Kenya targets an inflation rate between 2.5% and 7.5% in the medium term.
With the current rate within this range, the bank is expected to continue monitoring economic indicators to ensure stability.
The bank’s next interest rate-setting meeting is scheduled for August 12, following a 25-basis-point rate cut to 9.75% in June aimed at supporting economic growth.
Key Economic Indicators:
- Inflation Rate: 4.1% year-over-year in July
- Monthly Inflation: 0.1% in July
- Target Inflation Range: 2.5% to 7.5%
- Next Interest Rate Meeting: August 12
Despite the recent increase, some forecasts suggest Kenya’s inflation might stabilize around 4.3%, influenced by factors such as currency fluctuations and government policies.
