Kenya’s inflation rose to 4.5 per cent year-on-year in August from 4.1 per cent the previous month, largely driven by higher prices of food and transport, the statistics office said on Friday.

Monthly inflation was at 0.3 per cent  in August, compared with 0.1 per cent  a month earlier, the Kenya National Bureau of Statistics said in a statement.

The central bank targets inflation within the 2.5 per cent to 7.5 per cent range in the medium term.

Earlier in August, the bank cut its benchmark lending rate by 25 basis points to 9.50 per cent, saying there was room to ease monetary policy further as inflation remains well within target.