You've been measuring inflation all wrong, IMF tells central bank

The findings show that CBK's key forecasting framework overstated some economic risks, misclassified climate shocks and moved away from global best practice...

✨ Key Highlights

The International Monetary Fund (IMF) has criticized the Central Bank of Kenya (CBK), stating its economic forecasting model is "flawed" and misdiagnosing inflation drivers.

The IMF's assessment undermines President William Ruto's efforts to control the rising cost of living.
Key organization involved: Central Bank of Kenya (CBK).
A notable detail is that this flawed model has reportedly misdiagnosed inflation for years, impacting policy decisions.

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