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Kenyan Inflation at Five-Year High of 7.9% Breaches Target

  • Rate of price growth exceeded economists’ estimates of 7.7%
  • Nation’s central bank may further increase borrowing costs
Downtown Nairobi. Kenya.

Downtown Nairobi. Kenya.

Photographer: REDA&CO/Universal Images Group Editorial/Getty Images

Kenya’s inflation rate climbed more than expected and exceeded the ceiling of the central bank’s target range for the first time in almost five years, increasing pressure on policy makers to hike the key interest rate.

Annual inflation accelerated to 7.9% in June from 7.1% a month earlier, Nairobi-based Kenya National Bureau of Statistics said Thursday in an emailed statement.  That’s the highest level since August 2017. The median estimate of six economists in a Bloomberg survey was 7.7%.