The Central Bank of Kenya (CBK) monetary measures continue to show desirable results as inflation is on a continued decline. Inflation rates for June 2012, posted by Kenya National Bureau of statistics (KNBS), stand at 10.05 per cent, down from 12.22 per cent in May 2012, a clear indication that the government is on track to meet its inflation target of 9 per cent.

Below is the trend in rate of inflation as posted by KNBS for the past 12 months:

The latest World Bank Report projects that inflation will remain below 10 per cent during the second half of 2012, perhaps this is reason enough for Central bank to lift its benchmark lending rate of 18 per cent which was put in place to help support the shilling and curb inflation.

The Central Bank of Kenya Monetary Policy Committee will meet on 5th July to announce its latest monetary policy stance, we will keep you posted on any developments.