Kenya’s inflation rate falls to 5.1%
Headline inflation for the month of February 2022, according to the Central Bank of Kenya (CBK) declined to 5.1%.
On a month-on-month basis, the country’s headline inflation reduced by 0.3% from the 5.4% inflation rate recorded in January 2022.
On a year-on-year basis, the recorded inflation rate for February 2022 is some 0.7% lower than the 5.8% inflation rate posted for February 2021.
Contributing to the lower inflation rate recorded for February 2022 as compared to that of January 2022, was the result of price reductions in food and fuel.
Read: Elon Musk acquires 9% stake in Twitter
But given the recent increment in inflation around the globe as a result of Russia’s invasion of Ukraine, which has led to high crude oil prices and food shortage in some parts of the world, Kenya’s inflation rate for the month of March is expected to inch up.
In response to the increased inflation rate, the Central Bank of Kenya is expected to review upwards its monetary policy rate to counter the rising inflation as is being done by most central banks across the globe.
Meanwhile, the monetary policy report of the Central Bank of Kenya indicates that Kenya’s exports to Russia and Ukraine in 2021, accounted for 1.4% and 0.1% of total exports.
Imports from Russia and Ukraine also accounted for 1.8% and 0.9% of total imports in 2021.
Total exports and imports as at March 2022 stood at $1.9bn and $3.8bn respectively.
