Kenya’s Inflation Update

(Reuters) – Kenya’s consumer price inflation inched up to 3.0% year-on-year in December, up from 2.8% a month earlier, the statistics office reported on Tuesday.

On a monthly basis, inflation was 0.6% compared to 0.3% in November, stated the Kenya National Bureau of Statistics.

Kenya targets an inflation rate between 2.5% and 7.5% in the medium term.

The central bank cut its benchmark lending rate by a larger-than-expected 75 basis points to 11.25% on December 5, indicating that there was room for looser policy to support economic growth as inflation remained under control.