Kenya’s annual inflation rose to 3.5% in February, marking the fourth consecutive increase. Core inflation stayed steady at 2.0%, while non-core inflation rose significantly to 8.2%. The central bank further cut the interest rate to 10.75% to stimulate economic growth, anticipating inflation to remain below target levels in the near term.
Kenya’s annual consumer inflation has increased for the fourth consecutive month, reaching 3.5% in February, up from 3.3% in January, as reported by the Kenya National Bureau of Statistics on Friday. While the core inflation rate remained unchanged at 2.0% for February, the non-core inflation rate saw a significant rise, increasing to 8.2% from 7.1% in the previous month.
In response to the economic situation, the central bank of Kenya lowered its main interest rate to 10.75% on February 5 for the fourth successive meeting. The bank aims to promote lending and stimulate economic growth, emphasizing its commitment to fostering a conducive financial environment. Furthermore, the central bank anticipates that inflation will remain below the midpoint of the target range, which spans from 2.5% to 7.5%, in the near future.
In summary, Kenya’s annual inflation trend reflects a persistent increase over the last four months, with current rates indicating a shift in non-core inflation. The central bank’s decision to reduce interest rates signifies an effort to enhance economic activity through improved lending. Maintaining inflation rates below designated targets remains a priority for monetary policy oversight.
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