NAIROBI, Oct 31 (Reuters) – Kenya’s inflation fell to 2.7% year-on-year in October, down from 3.6% a month earlier, the statistics office said on Thursday.

On a month-on-month basis, October inflation was 0.2%, the same as the previous month, the Kenya National Bureau of Statistics said in a statement.

The Kenyan government targets an inflation rate of between 2.5% and 7.5% in the medium-term.

Kenya’s central bank slashed its benchmark lending rate to 12.00% from 12.75% earlier this month, in a move aimed at stimulating credit to the private sector.

(Reporting by Hereward Holland; Editing by Christina Fincher)