Kenyan energy price rises muddy rate cut decision

15 March 2012

Reuters - March 14, 2012

Kenya's energy regulator warned on Wednesday it may raise energy prices in the coming months after lifting the cost of petrol and kerosene for the first time since November, complicating the central bank's decision on when to cut interest rates.

Fuel prices can have a significant impact on inflation in east Africa's biggest economy and price reductions in the previous three months for diesel, petrol and kerosene have helped ease inflationary pressures.

The year-on-year inflation rate fell by more than expected in February to 16.7 percent from 18.3 percent in January, though the central bank kept its benchmark lending rate at 18 percent this month, warning of inflation risks.

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Categories: Energy

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