NAIROBI, July 18 (Xinhua) -- Kenya's overall inflation rate is expected to drop to within the target range of 7.5 percent in the next two months, the country's apex bank on Tuesday.
Central Bank of Kenya (CBK) Governor Professor Patrick Njoroge told a media briefing in Nairobi that the decline from the current level of 9.2 percent will be largely driven by lower food prices.
"As of now, Kenya is on very solid ground to reduce its inflation rate to less than 7.5 percent. Currently, it is difficult to get more precise projections because they will depend on the price of the common staples food," Njoroge said.
The apex bank has set an inflation target of between 2.5 and 7.5 percent.
Njoroge added that overall inflation in the country has been on downward trend lately due to the impact of the recent rains on food production as well as government measures to control rising food prices.
He noted that the price of agricultural commodities are not driven by monetary dynamics unlike other commodities.
On Monday, the Central Bank of Kenya's Monetary Policy Committee retained the benchmark rate at 10 percent in order to continue to anchor inflation expectations.
According to the Governor, the agricultural sector is not performing as well as the other sectors of the economy despite the lower food prices.
"The other sectors such as manufacturing, real estate, Information and Communication Technology and transport have continued to show dynamism even with the slowdown in private sector lending," Njoroge said.
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