Kenya’s annual inflation has risen to 3.5% in February, the fourth consecutive month of increases. Core inflation remains at 2.0%, while non-core inflation rose from 7.1% to 8.2%. In response, the Central Bank has reduced the interest rate to 10.75% to support economic growth, with expectations for inflation to stay below the target range.
Kenya’s annual inflation rate rose to 3.5% in February, marking the fourth consecutive month of increases, as reported by the Kenya National Bureau of Statistics on Friday. This figure is an uptick from January’s rate of 3.3%. Core inflation, however, remained stable at 2.0%, while non-core inflation saw a noticeable rise from 7.1% in January to 8.2% in February, highlighting fluctuations within the economy.
In an effort to support economic growth, the Central Bank of Kenya lowered its main interest rate to 10.75% on February 5. This decision reflects ongoing measures to enhance lending capabilities and stimulate overall economic activity. The central bank anticipates that inflation will likely remain below the midpoint of its target range, which is set between 2.5% and 7.5%, over the near term.
In summary, Kenya’s rising inflation rates signal ongoing economic adjustments, with annual inflation hitting 3.5%. While core inflation remains stable, a significant increase in non-core inflation indicates heightened costs in certain sectors. The Central Bank’s decision to reduce interest rates aims to promote economic growth while keeping inflation expectations in check.
Original Source: www.tradingview.com
