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Kenyan Inflation Increases to 8.4% in August

Consumer Price Index up from 7.7% in July

The Kenya National Bureau of Statistics released inflation statistics for the month of August today. The figure for Consumer Price Index (a measure of the amount of inflation bore by the consumer) increased to 8.4% in August from 7.7% in July.

According to Bloomberg, bad weather has put Kenya’s main crop corn under duress, causing prices to rise and therefore increasing the CPI.

Kenyan Interest rates are currently at 8.5% and have been on hold since mid 2013. The central bank is currently trying to encourage lower lending rates by investors and so may be hesitant to raise interest rates to control the level of inflation. Bloomberg reports that the average lending rate in Kenya is 16.9%

To read our source of the story please click through to Bloomberg via this link.