Inflation Targeting and its Effect on Food Price Volatility in Kenya
| dc.contributor.author | Meni, Fredrick | |
| dc.contributor.author | Kimunio, Isaac | |
| dc.date.accessioned | 2025-10-27T10:35:19Z | |
| dc.date.available | 2025-10-27T10:35:19Z | |
| dc.date.issued | 2024-06 | |
| dc.description | Article | |
| dc.description.abstract | Purpose of Study: The study investigates the effectiveness of inflation targeting in stabilizing food prices by examining its impact on food price volatility and the broader economic factors influencing this instability, including global commodity prices, exchange rate fluctuations, climate variability, and regional conflicts. Inflation targeting, introduced by the Central Bank of Kenya in 2011, aims to control inflation and stabilize prices. Problem Statement: Despite achieving its overall inflation objectives, Kenya continues to face volatile food prices, posing significant socioeconomic challenges, especially for low-income households that are heavily burdened by high food costs. Methodology: The study aopted non-experimental research design with secondary quarterly time series data from 2011 to 2022 sourced from the Central Bank of Kenya, Kenya National Bureau of Statistics, and the Food and Agriculture Organization, this research analyzes factors including the Consumer Price Index, exchange rates, and food prices using a Vector Error Correction Model (VECM). Result: The findings indicate that, while inflation targeting has succeeded in controlling overall inflation, it has struggled to reduce food price volatility. This suggests the need for more comprehensive policies that go beyond traditional monetary strategies to stabilize food prices effectively. Conclusion: The results highlight the necessity for a multifaceted approach involving monetary, fiscal, and trade policies to manage food price dynamics, improve food security, support farmers' incomes, and enhance overall economic stability in Kenya. | |
| dc.identifier.citation | Meni, F., & Kimunio, I. (2024). Inflation targeting and its effect on food price volatility in Kenya. African Journal of Emerging Issues, 6(10), 93-110. | |
| dc.identifier.issn | 2663-9335 | |
| dc.identifier.uri | https://ir-library.ku.ac.ke/handle/123456789/31853 | |
| dc.language.iso | en | |
| dc.publisher | African Journal of Emerging Issues | |
| dc.title | Inflation Targeting and its Effect on Food Price Volatility in Kenya | |
| dc.type | Article |