Kenya’s inflation rose marginally to 4.4 per cent in August from 4.3 per cent in July according to the statistics office on Friday.
The Kenya National Bureau of Statistics (KNBS) data showed that on a month-on-month basis, inflation was flat at 0.0% from -0.2% in July.
The rise was attributed to an increase in prices of commodities in the following categories; Food & Non-Alcoholic Beverages, Housing, Water, Electricity, Gas & other fuels, and Transport by 5.3%, 4.2%, and 3.9% respectively.
During the period, costs for public transport increased by 25% from Mombasa to Kisumu. Food and Non-Alcoholic Beverages: Prices rose by 5.3% in the last 12 months, with potatoes and fruits experiencing significant increases. Rent, Water, and Energy rose by 4.2% in the past year.
Kenya’s inflation rate remains within the government’s target range of 2.5% to 7.5% for the fourteenth consecutive month.
The CBK’s monetary policy measures and favorable economic conditions could help stabilize inflation in the coming months.
“In our view, the rate will be pegged on whether the shilling will sustain its appreciation against the dollar, resulting in a decline in the import bill and costs passed to consumers through hiked consumer prices. Additionally, favourable weather conditions may also contribute to stabilizing food prices, further supporting lower inflation rates,” says Cytonn Investments,