Kenya Inflation Tops Target Midpoint a Third Month on Energy

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessKenya Inflation Tops Target Midpoint a Third Month on EnergyKenya’s annual inflation rate exceeded the midpoint of the central bank’s target range for a third month, as energy costs fueled price growth.Author of the article: You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — Kenya’s annual inflation rate exceeded the midpoint of the central bank’s target range for a third month, as energy costs fueled price growth.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountConsumer prices rose 6.5% in July, compared with 6.4% in June, the Kenya National Bureau of Statistics said Friday in an emailed statement. The nation’s monetary policy committee had projected a rate of 6.7% this month.Inflation in Kenya, an oil importer, has tracked higher since the start of the US-Israeli war on Iran in February triggered a surge in energy and fertilizer prices. The central bank, which aims to anchor price-growth expectations at 5%, held its benchmark interest rate at 8.75% in June for the second meeting in a row in order to assess the impact of the conflict on its forecasts. Core inflation, the central bank’s preferred gauge of underlying price growth, edged up to 3.2% in July from 3.1% in the previous month, reflecting second-round effects from higher fuel prices. The transport index rose 15.6%, even after the authorities left gasoline-pump prices unchanged, while the food and non-alcoholic index was 9% higher.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againFuel demand has eased in Kenya since the start of Middle East conflict and is about 6% below normal seasonality through May, according S&P Global Ratings. That suggests “the energy shock is increasingly weighing on growth” through demand destruction, it said in a statement.Falling diesel consumption signals softer freight, industrial activity and domestic demand, S&P said.Higher fertilizer prices have inflated Kenya’s food index, which accounts for the bulk of the inflation basket. The country has been hit by import delays that disrupted commercial farming, according to the Food Security and Nutrition Working Group, a humanitarian network. Corn prices are as much as 21% above the five-year average in some locations, it said.The nation is facing an “elevated risk” of food insecurity owing to corn-crop failures in the breadbasket regions of Kenya’s northern Rift Valley — an area that produces the bulk of the nation’s staple gain — because of poor rains, according to the Kenya Meteorological Department.A weather-roiling super El Niño event – which is expected to be characterized by above-average rainfall in Kenya — is expected to arrive around October, with the risk of flooding that may destroy crops and damage infrastructure.Still, the central bank is seen leaving interest rates unchanged at 8.75% when policymakers meet on Aug. 11, to help spur private-sector lending and boost economic growth.Sign up here for the daily Next Africa newsletter and subscribe to the Next Africa podcast on Apple, Spotify or anywhere you listen.(Updates with analyst comment from fifth paragraph)This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. 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