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Kenya Inflation Rises to 6.5% in July on Fuel Costs

Bloomberg Markets •
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Kenya's annual inflation rate climbed slightly to 6.5% in July from 6.4% in June, exceeding the midpoint of the central bank's target range for a third consecutive month, according to data released Friday by the Kenya National Bureau of Statistics.

The uptick was driven primarily by rising energy costs, which continue to weigh on the consumer price index. Fuel prices have exerted upward pressure on transportation and household expenses, keeping inflation above the central bank's 5% midpoint target.

The statistics bureau said in an emailed statement that the increase reflects persistent cost pressures in the energy sector. Food prices also contributed to the headline figure, though at a more moderate pace than previous months.

Policymakers will monitor whether this trend persists into August, as the central bank aims to anchor inflation within its 2.5%-7.5% target band. The July reading marks the third straight month above the midpoint, signaling sustained price pressures in East Africa's largest economy.