Kenya’s Inflation Rates Continue to Climb Amid Economic Adjustments

Kenya’s annual inflation rose to 3.5% in February, marking an increase for the fourth straight month from January’s 3.3%. Core inflation held at 2.0%, while non-core inflation climbed to 8.2%. The Central Bank reduced interest rates to 10.75% to support economic growth, with inflation expected to remain under the target range in the near term.

Kenya’s annual consumer inflation increased for the fourth consecutive month, rising to 3.5% in February, up from 3.3% in January, as reported by the statistics office. Core inflation remained stable at 2.0%, while non-core inflation experienced a notable rise from 7.1% to 8.2% during the same period, as indicated by the Kenya National Bureau of Statistics in their recent statement.

In a move to stimulate lending and bolster economic growth, the Central Bank of Kenya reduced its main interest rate to 10.75% on February 5, marking the fourth consecutive rate cut. The bank indicated that inflation levels are anticipated to remain below the midpoint of their target range of 2.5% to 7.5% in the near future, suggesting a cautious economic outlook.

In summary, Kenya’s annual inflation has risen steadily, reflecting ongoing changes in both core and non-core inflation rates. The Central Bank’s strategic interest rate cuts highlight efforts to support economic growth amidst rising inflation. Looking ahead, inflation is expected to remain within the target range, signifying a careful approach to monetary policy amidst these fluctuations.

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