Kenya’s inflation has risen for the fourth month in a row, reaching 3.5% in February 2025 from 3.3% in January. The rate had previously stabilized below 5% since June 2024 after an all-time high of 9.2% in 2023. The central bank has lowered interest rates to stimulate economic growth, despite rising food and transport costs.
Kenya’s inflation rate has experienced a notable increase for the fourth consecutive month, escalating to 3.5% in February 2025 from 3.3% in January. This trend signifies an upward trajectory that commenced in November 2024, continuing despite having remained below the critical 5% threshold since June. The country had previously managed remarkable control over inflation rates, with a significant all-time high of 9.2% recorded in 2023.
In comparison to earlier months, Kenya’s inflation rate experienced a decrease from 4.4% in August to 3.6% in September and then further improved to 2.7% in October 2024. However, subsequent months have displayed a reverting trend, with February’s inflation rate rising to 3.5%. This fluctuation was articulated in an email from the Kenyan National Bureau of Statistics, reported by Bloomberg.
The core inflation rate, excluding energy and the costs of volatile agricultural products, indicated weak demand at 2%. In contrast, the previous year had seen inflation plummet to a 23-month low of 6.3% by February. Escalating inflation rates continued into March, where it was reported at 5.7%, before stabilizing at 5.0% in both April and May, ultimately declining to 4.6% in June.
Since June, Kenya has successfully maintained inflation below 5%, showcasing a commendable achievement in economic management. On February 5, the central bank reduced the interest rate to 10.75% for the fourth time, aiming to enhance lending and promote economic growth. “Prices of food and non-alcoholic drinks rose 6.4% in February from 6.1% a month earlier,” as stated by Bloomberg.
In summary, Kenya’s inflation has seen a concerning rise in recent months, escalating to 3.5% in February 2025 after maintaining lower rates in previous months. The central bank’s efforts to manage inflation and stimulate the economy include reducing interest rates, which highlights the critical nature of the current economic climate. Continued monitoring and strategic adjustments are imperative for sustaining economic health moving forward.
Original Source: africa.businessinsider.com
