Kenya: Inflation climbs in August, overshooting the Central Bank's upper bound target
August 31, 2017
Consumer prices rose 0.61% from the previous month in August, contrasting July’s 0.97% decline. While higher prices for health and food and non-alcoholic beverages drove the upswing, the gains were broad-based, as all but two sub-categories recorded price increases. The two exceptions were education, for which prices remained flat, and recreation and culture, which saw a marginal dip in prices.
Emulating the month-on-month change in consumer prices, inflation rose to 8.0% in August, reviving the upward trend after falling to the upper bound of the Central Bank’s target range of 7.5% in July. This spurred annual average inflation to edge up to 8.4% in August from 8.2% in July.
Author: Nihad Ahmed, Economist