Nairobi, Aug. 12 -- The Central Bank of Kenya (CBK) expects inflation to peak lower than previously projected, amid anticipation that the US-Israel war against Iran will be resolved soon.

The CBK projects inflation will peak at 6.8 percent in January 2027 before easing in subsequent months, compared with its June projection of 7.2 per cent in February 2027.

"Overall inflation is expected to remain within the target range in the near term, assuming a de-escalation of the conflict in the Middle East," CBK Governor Kamau Thugge said on Wednesday.

Kenya's inflation edged up to 6.5 percent in July from 6.4 percent in June, driven by higher transport costs.

The CBK expects inflation to remain within its target band of 2.5 to 7.5 percent, as...