Kenya’s Inflation Rate Rises to 6.91%

Kenya’s September inflation rate rose to 6.91% from 6.57% in August. The increase is attributed to a rise in commodities prices, with food, non-alcoholic beverages and transport increasing by 10.63% and 9.21 %, respectively, compared to September 2020.

The food and non-alcoholic drinks index increased by 0.11% between August 2021 and September 2021.

The transport index decreased by 1.17% due to a decrease in petrol and diesel that went up by 5.91% and 7.30%, respectively.

Despite the increase in inflation, it is within the Central Bank of Kenya target of between 2.5% and 7.5%.

What it means for you

With the rise in inflation, the cost of goods and services becomes more expensive.

On the other hand, it means that your savings and investments should bring you higher rates of 6.91% to offset the effects of inflation on your money.

If you want to find out more, I wrote an article about the impact of inflation on your savings and investments.