NAIROBI, July 31 – Kenya’s annual inflation accelerated slightly in July, remaining above the midpoint of the Central Bank of Kenya’s target range for a third consecutive month as higher energy costs continued to put upward pressure on consumer prices.
According to the Kenya National Bureau of Statistics (KNBS), headline inflation rose to 6.5% in July, up marginally from 6.4% recorded in June.
The latest reading was, however, below the 6.7% inflation rate projected by the Central Bank of Kenya’s Monetary Policy Committee for the month, suggesting that while price pressures persist, they have been slightly less severe than policymakers anticipated.
The increase in inflation was primarily driven by higher energy costs, underscoring the continued influence of fuel and utility prices on household expenditure and the broader cost of living.
Although inflation remains within the central bank’s official target range, it has stayed above the 5% midpoint for three consecutive months, a development that could influence future monetary policy decisions as authorities seek to balance price stability with economic growth.
Kenya’s inflation trajectory will remain closely monitored by investors and policymakers, particularly as global energy prices and domestic cost pressures continue to shape the country’s macroeconomic outlook.
