The inflation rate has hit a fresh 5-year high, placing further pressure on Kenyan households driven by rising food and fuel prices.
According to the Kenya National Bureau of Statistics (KNBS) data, this was due to an increase in prices of food and non-alcoholic beverages, which rose 15.3 per cent from July last year, transport grew 7 per cent, and housing, water, electricity, gas and other fuels by 5.6 per cent.
“The overall year-on-year inflation rate as measured by the Consumer Price Index (CPI) was 8.3 per cent, in July 2022. The month-to-month food and non-alcoholic beverage index increased by 1.1 per cent between June 2022 and July 2022,” said KNBS Director-General MacDonald Obudho.
“Alcoholic Beverages, Tobacco and Narcotics Index increased by 1.3 percent between June 2022 and July 2022. This was due to an increase in prices of beer (lagers and stouts), among other items,” said Mr Obudho.
Inflation highlights. Inflation in July 2022 was 8.3 percent pic.twitter.com/QyyGJmMUPk
— Central Bank of Kenya (@CBKKenya) July 29, 2022
The Central Bank of Kenya, on Wednesday, during its Monetary Policy Committee (MPC) meeting, left its benchmark lending rate at 7.5 per cent unchanged. The MPC noted that its action of tightening monetary policy in May 2022 was timely in anticipating inflationary pressures.
“This action was subsequently complemented by an additional package of measures by the Government to moderate the prices of specific items. The MPC also noted that international commodity prices, particularly oil, wheat and edible oils, had begun to moderate. These developments are expected to ease domestic inflationary pressures in the near term.”
