Inflation rises to 7.67pc in July, breaches central bank limit
Consumers queue to pay electricity bills at Kenya Power offices. Inflation rate in July rose to 7.67 per cent from 7.39 per cent in June riding on rising costs of food and electricity. PHOTO|FILE
Inflation breached the Central Bank of Kenya’s preferred target of 7.5 per cent, rising to an eight-month high due to increased food and electricity prices.
The cost of living measure stood at 7.67 per cent, up from 7.39 per cent in June — making it the fifth straight increase since March.
The Kenya National Bureau of Statistics (KNBS) attributes the jump to a rise in electricity prices following review of power tariffs and food cost.
The upward rise in inflation means households had to contend with higher prices of the commodities.
At 7.67 per cent, July’s inflation is the highest since October when it stood at 7.76 per cent, a month after the introduction of Value Added Tax on previously exempt basic commodities.
CBK has set an inflation target at five per cent with a margin of 2.5 per cent on either side.
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