CBK sees inflation peaking at 6.2pc in July on Iran war
CBK Governor Kamau Thugge said the inflation outlook has been revised upwards due to the oil price shock, though pressures are expected to ease over time. Kenya breaking news | Kenya news today |..
✨ Key Highlights
The Central Bank of Kenya (CBK) projects inflation could peak at 6.2 percent in July 2026 due to the ongoing Iran conflict, which is driving up oil prices.
- Inflation forecast revised upwards to peak at 6.2% in July 2026 if the Iran conflict persists for three months.
- CBK Governor Kamau Thugge cited oil price shock as the primary driver.
- Despite earlier fuel price hikes and VAT cuts, the government has further reduced VAT on petroleum products to 8% to cushion consumers.
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CBK Sees Inflation Peaking at 6.2pc in July on Iran War - April 2026
The Central Bank of Kenya (CBK) projects inflation could peak at 6.2 percent in July 2026 due to the ongoing Iran conflict, which is driving up oil prices. Deputy President Kithure Kindiki stated that the recent increase in fuel prices is not due to government policy but is a consequence of the ongoing war in Iran. Meanwhile, China's economy has demonstrated stronger-than-expected growth of 5 percent in the first quarter, defying global economic disruptions including the conflict involving Iran.
