Kenya’s annual inflation increased to 3.5% in February, continuing a trend for four months. Core inflation held steady at 2.0%, while non-core inflation rose to 8.2%. In response, the Central Bank cut the main interest rate to 10.75% to support lending and economic growth, anticipating inflation to stay below the target range.
Kenya’s annual consumer inflation rose for the fourth consecutive month, reaching 3.5% in February, up from 3.3% in January, according to the Kenya National Bureau of Statistics. While core inflation remained stable at 2.0%, non-core inflation surged to 8.2%, a significant increase from the previous month’s rate of 7.1%. This inflation trend highlights the ongoing economic challenges faced by Kenya, as various factors influence consumer prices.
In response to these inflationary pressures, the Central Bank of Kenya has taken measures to support economic growth. During its monetary policy meeting on February 5, the central bank reduced the main interest rate to 10.75%. This marks the fourth consecutive reduction in efforts to stimulate lending and enhance economic activity in the country. The bank anticipates that inflation will stay within the target range of 2.5% to 7.5% in the near term, which reflects a cautious optimism regarding future economic stability.
The rise in Kenya’s annual inflation to 3.5% marks a continuation of existing economic pressures. Although core inflation has stabilized, a notable increase in non-core inflation signals ongoing challenges. The Central Bank’s decision to cut interest rates aims to foster lending and economic growth, with hopes that inflation will remain manageable in the near future.
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