CBK inflation forecasts struggle to keep pace with price shocks

The Central Bank Of Kenya.

Photo credit: File | Nation Media Group

The Central Bank of Kenya (CBK) inflation forecast has deviated from the actual changes in consumer prices, as fuel prices remain higher for longer while new supply shocks like the ongoing milk scarcity upset the monetary authority’s expectations.

An analysis of CBK inflation forecast and the actual CPI print from the Kenya National Bureau Statistics (KNBS) shows a deviation from expectations in four of the last six months.

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Note: The results are not exact but very close to the actual.