Kenya: Inflation hits two-year high

RISING food prices helped push up Kenya’s consumer inflation rate last month to its highest level since June 2012, the statistics office said yesterday, making it more likely that the central bank will lift interest rates. Annual inflation rose to 8.36 percent in August from 7.67 percent in the previous month, it said. Consumer prices rose 0.94 percent from July, while the food and non-alcoholic beverages index was up 1.75 percent on the month. “With the [central bank rate] at 8.5 percent, there is room for a modest rise in the rate by the end of the year,” Razia Khan, the head of research for Africa at Standard Chartered Bank, said. The central bank’s monetary policy committee will meet tomorrow. – Reuters