Kenya’s annual inflation has slowed to a 16-month low in February 2022 on easing food and electricity prices.
The consumer price index has risen by 5.1% from a year earlier, compared with 5.4% in January, according to Kenya’s National Bureau of Statistics.
East Africa’s largest economy is facing upward price pressures from the continued depreciation of its currency that’s driving up import costs, a surge in food prices fueled by a drought in the north and Russo-Ukrainian war that’s also caused oil to jump to a 2014-high.
However, while inflation remains within the central bank’s target range of 2.5% to 7.5%, upside risks to the outlook and worries over living costs, may persuade the monetary policy authority to hike its key interest rate at its March 29 meeting.
