(Bloomberg) -- Kenyan annual inflation halted months of easing in August, after the prices of food, utilities, energy and transport rose from a year earlier.
The consumer price index increased 4.4% in August compared to 4.3% during the previous month, the Kenya National Bureau of Statistics said Friday in a statement. Three sub-indices that account for more than 57% of the overall inflation basket rose, the statistics agency said.
Kenya’s central bank surprised markets this month by cutting its benchmark interest rate for the first time in four years, citing expectations for inflation to remain below the midpoint of its target range in the near term. The projection was supported by a stable exchange rate and fuel prices and and good weather that’s likely to boost harvests.
The central bank targets inflation in a band of 2.5% to 7.5%.
Key Highlights:
- Prices of food and non-alcoholic drinks – which makes up a third of the inflation basket – increased by 5.3% from a year ago.
- The housing, water, electricity, gas and other fuels index - the second biggest component at almost 15% - climbed 4.2% during the period.
- Transport costs rose 3.9%, even after gasoline prices remained unchanged in the mid-month review.
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