NAIROBI: A fall in Kenyan food prices slowed inflation to 5.84 percent year-on-year in August from 6.62 percent in the previous month, the statistics office said on Monday.
Kenya’s food and non-alcoholic drinks segment, which accounts for more than a third of the index, decreased by 0.26 percent between July and August, as favourable weather conditions pushed down the cost of food, the Kenya National Bureau of Statistics (KNBS) said in a statement. But other costs, including gas, electricity and housing, edged up 0.76 percent, partly due to a weakening local currency.
Kenya’s shilling has lost about 11.5 percent against the dollar this year and policy makers have warned there is a risk it could drive inflation higher.
The central bank has a medium term inflation target range of between 2.5 percent and 7.5 percent. Inflation eased from 7.03 percent in June last month, a move that was also attributed to a fall in food prices.
