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The four-year low was helped by strong shilling and marginal price reductions in key household costs such as electricity and fuel
Inflation in Kenya has fallen to 4.3% year-on-year in July from 4.6 % a month earlier, according to new data released by the Kenya National Bureau of Statistics recently. The four-year low was helped by strong shilling and marginal price reductions in key household costs such as electricity and fuel.
This has led to a reduction in transport costs which saw a rise of just 4% in July compared to 7.7%the previous month. The price of many foods decreased by 0.5% between June and July. Such a decline was not across the board; some goods recorded higher prices.
Kenya targets an inflation rate of between 2.5% and 7.5% in the medium term. While overall inflation remains under control, increases in other household costs like cooking oil and cooking gas went up leading to consumers continue to face the brunt.
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In June, Kenyans took to the streets in a wave of deadly protests over tax hikes and the cost of living. President William Ruto was forced to scrap a proposed finance bill containing the increases in response to the demonstrations.
The easing of inflation this month could influence the Central Bank’s decision on interest rates, with a potential rate cut expected when the Monetary Policy Committee convenes on 6 August.
