Kenya Inflation Hits 6.6% Amid Fuel Price Surges

Kenya's annual inflation rate rose to 6.6% in August, exceeding the 6.4% estimate from economists and the expectations of the Central Bank of Kenya. The Kenya National Bureau of Statistics reported that consumer prices increased 0.4% over the month, while core inflation climbed to 3.4% from 3.2% in July.

This acceleration is driven by elevated fuel costs resulting from the war in Iran, which have created second-round price pressures. Inflation has now exceeded the central bank's 5% target midpoint for five consecutive months.

The economic situation is further complicated by an upcoming super El Niño, which threatens to damage corn harvests in the Horn of Africa. Monetary policymakers are scheduled to review these figures during their committee meeting next month.