NAIROBI, Kenya April 20-The International Monetary Fund (IMF) expects the cost of living in Kenya to remain elevated throughout the year with inflation averaging 7.2 per cent in 2022.
The IMF in its April World Economic Outlook noted that the projection is driven by war-induced commodity price increases and broadening price pressures
“Fuel and food prices have increased rapidly, with vulnerable populations—particularly in low-income countries— most affected,” said the IMF.
According to the multilateral lender, elevated inflation will complicate the trade-offs central banks face between containing price pressures and safeguarding growth.
“Interest rates are expected to rise as central banks tighten policy, exerting pressure on emerging market and developing economies,” it said
As at March 2022, inflation in Kenya stood at 5.6 per cent but is set to spike at the end of April on costlier fuel and certain food commodities such as wheat, maize flour and milk.
Meanwhile, the IMF has left Kenya’s GDP projection at 5.7 per cent and at a lower 4.6 per cent in 2023.
Global growth is projected to slow from an estimated 6.1 percent in 2021 to 3.6 percent in 2022 and 2023.
This is 0.8 and 0.2 percentage points lower for 2022 and 2023 than in the January World Economic Outlook Update.
Beyond 2023, global growth is forecast to decline to about 3.3 percent over the medium term
