Kenya’s inflation increased slightly from 4.3% in July to 4.4% in August, according to figures released by the statistics office.
________
Inflation was unchanged at 0.0% month over month after falling to -0.2% in July, according to a statement from the Kenya National Bureau of Statistics.
In the medium run, the Kenyan government aims for an inflation rate of 2.5% to 7.5%.
Earlier this month, Kenya’s central bank lowered its benchmark lending rate by 25 basis points, stating that policy could be gradually eased as inflation had dropped below the middle of its target range.
According to the statistics office, three sub-indices that make up more than 57% of the total inflation basket increased.
In August, Kenya’s central bank shocked investors by lowering its benchmark interest rate for the first time in four years. The bank gave the reason that it anticipated inflation would stay below the middle of its target range in the foreseeable future. The forecast was bolstered by favorable weather that is anticipated to increase harvests, a stable currency rate, and stable gasoline prices.
The 2.5% to 7.5% range is the central bank’s target inflation range.