Kenya's Inflation Takes an Upward Turn Amid Central Bank Rate Cuts

Kenya's consumer inflation rose to 3.5% in February. Core inflation held steady at 2.0%, while non-core inflation increased to 8.2%. The central bank reduced its interest rate to 10.75% to boost economic growth, expecting inflation to stay within the target range.

Kenya's consumer inflation witnessed a rise for the fourth consecutive month, reaching 3.5% in February, up from 3.3% in January, according to figures released by the statistics office.

The report indicated that core inflation remained stable at 2.0% during February, mirroring January's figures, while non-core inflation saw an increase from 7.1% to 8.2%. The Kenya National Bureau of Statistics emphasized these findings in their recent statement.

In an effort to stimulate lending and foster economic growth, Kenya's central bank cut its primary interest rate to 10.75% at its meeting on February 5. The central bank expressed optimism that inflation would remain below the midpoint of the official target range of 2.5%-7.5% in the near term.