Kenya’s Inflation Rises for Fourth Consecutive Month

Kenya’s annual inflation rose to 3.5% in February, continuing an upward trend for the fourth month. Core inflation stayed at 2.0%, while non-core inflation increased to 8.2%. The central bank lowered its main interest rate to 10.75% to enhance lending and support economic growth, with expectations of inflation remaining below target levels.

Kenya’s annual consumer inflation climbed for the fourth consecutive month, reaching 3.5% in February, up from January’s 3.3%, as reported by the national statistics office on Friday. Core inflation remained stable at 2.0% during the same period, while non-core inflation experienced a rise to 8.2% in February from 7.1% in January, according to the Kenya National Bureau of Statistics.

In a bid to bolster lending and stimulate economic growth, Kenya’s central bank reduced its main interest rate for the fourth meeting in succession, setting it at 10.75% on February 5. The central bank expressed expectations that inflation would stay below the midpoint of the 2.5%-7.5% target range in the short term, indicating a cautious optimism about inflation management moving forward.

In summary, Kenya’s inflation has shown a continual upward trend, specifically in the consumer sector. The central bank’s recent interest rate cut reflects its commitment to fostering economic growth while managing inflation within the targeted range. Observations suggest that core inflation remains stable, amid fluctuations in non-core inflation, marking ongoing economic developments in the region.

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