Kenya’s annual consumer inflation rose to 3.5% in February, continuing an upward trend for the fourth month. Core inflation remained stable at 2.0%, while non-core inflation increased significantly to 8.2%. The central bank reduced the main interest rate to 10.75% to support lending and economic growth, projecting inflation to stay below the target midpoint.
In February, Kenya’s annual consumer inflation increased for the fourth consecutive month, reaching 3.5% from 3.3% in January, as reported by the statistics office. Core inflation held steady at 2.0%, while non-core inflation saw an uptick to 8.2% from 7.1% in the preceding month, according to the Kenya National Bureau of Statistics.
On February 5, Kenya’s central bank reduced its key interest rate to 10.75% for the fourth time, indicating its intentions to foster lending and stimulate economic growth. The central bank anticipates that inflation will remain below the midpoint of the targeted range of 2.5%-7.5% in the near future.
Kenya’s inflation trends show a continued rise, particularly in non-core inflation, while core inflation remains unchanged. The central bank’s decision to lower interest rates is part of a broader strategy to encourage economic expansion amid these inflationary pressures. Overall, Kenya is managing inflation expectations, targeting a controlled range moving forward.
Original Source: www.tradingview.com
