This archive report was first published on 28 September 2021.
On September 28, 2021, the Central Bank of Kenya (CBK) forecasted a high cost of living ahead as inflation persisted in the country.
The CBK's Monetary Policy Committee (MPC) attributed the elevated inflation to rising global crude oil prices, supply constraints that have raised the cost of raw materials for local factories, and dry weather conditions.
CBK Governor Patrick Njoroge stated, 'Inflation pressures are expected to be elevated in the near term, mainly driven by increases in fuel and food prices, and the impact of the recently implemented tax measures.' However, he added that inflation is expected to remain within the target range with muted demand pressures.
Kenya maintains an inflation target range of 2.5 percent to 7.5 percent, a goal that was last breached during a biting drought in 2017, which was also an election year.
According to the MPC, inflation rose to 6.57 percent in August from 6.55 percent a month earlier, largely driven by the average food and fuel cost index, which climbed 10.7 percent and 9.1 percent, respectively.
