The inflation rate in Kenya accelerated for the seventh consecutive month to 9.2 per cent in September.
The rate was 8.5 per cent in August, above the central bank’s target range of 2.5 per cent-7.5 per cent.
The high price of food, fuel and cooking oil over the past 12 months was the main driver of inflation, according to the Kenya National Bureau of Statistics (KNBS).
“The rise in inflation was largely due to increase in prices of commodities under food and non-alcoholic beverages (15.5 per cent); transport (10.2 per cent) and housing, water, electricity, gas and other fuels (7.3 per cent) between September 2021 and September 2022,” said KNBS in a statement.
The cost of housing, water, electricity, gas, and other fuels rose by 2.5 per cent between August and September this year, owing to increased electricity prices.
“The rise in the cost of electricity was mainly driven by a 46.7 per cent increase in fuel energy cost. The price of kerosene and paraffin also rose by 14.6 per cent.”
Prices of household equipment and commodities under furnishings recorded a 10.7 per cent increase during the period under review.
“During the same period, prices of tomatoes and carrots dropped by 10.2 per cent and 7.2 per cent, respectively. Relative to last month, a number of quick growing vegetables showed price falls,” KNBS noted.
The transport index also increased in the period under review by 3.6 per cent, due to fuel prices. Diesel and petrol prices rose by 17.7 per cent and 12.6 per cent respectively.
Inflation highlights. Inflation in September 2022 was 9.2 percent pic.twitter.com/W4v9EC50gV
— Central Bank of Kenya (@CBKKenya) September 30, 2022
On Thursday, the CBK raised the key lending rate by 75 basis points to 8.25 percent, saying the rising inflation, global risks and their impact on the domestic economy call for tightening monetary policy.
“The Committee noted the sustained inflationary pressures, the elevated global risks and their potential impact on the domestic economy and concluded that there was scope for a tightening of the monetary policy in order to further anchor inflation expectations,” CBK said in a statement on Thursday.
