In a recent report released by the Kenya National Bureau of Statistics (KNBS), Kenya’s inflation, measured by the Kenya Consumer Price Index (KECPI=ECI), experienced a slight uptick in September.
On a monthly basis, inflation increased by 1%, a significant shift from the -0.1% recorded the month before, according to data released by the KNBS.
This rise in inflation came hot on the heels of the announcement of an increase in costs of fuel by the Energy and Petroleum Regulatory Authority (EPRA) in mid-September. The increases affected the prices of petrol, diesel, and kerosene.
Fuel prices play a pivotal role in driving inflation in Kenya, a country heavily reliant on diesel for transportation, power generation, and agriculture.
Additionally, kerosene remains a crucial energy source for many households, serving as a primary means for cooking and lighting.
The Kenyan government has a preferred inflation band of 2.5% to 7.5% in the medium term, underscoring the importance of monitoring and managing inflationary pressures in the nation’s economy.