Skip to content
Headlines

Inflation for the Month of June to fall between 4.50% – 4.70% – Genghis

BY Soko Directory Team · June 29, 2018 08:06 am

Kenyans should expect the inflation rate for the month of June to fall between 4.50 and 4.70 percent according to predictions given by Genghis Capital.

“We expect a headline inflation print between 4.50% – 4.70% attributed to the y/y base impact and also the effect of runaway fuel inflation,” said Genghis.

Fuel inflation touched 11.40 percent on a year-to-year basis during the month of May (3.50% y/y in May 2017) propelled by rising global oil price together with the first round impact of the logging ban.

On the other hand, core inflation remains muted (3.90 percent y/y in May). In a 1Q18 period, core inflation averaged 3.63 percent (4.21 percent in 1Q17) while producer price index inflation hit 1.53 percent (3.38% in 1Q17); an indicator of reduced demand in both consumption and production.

However, private business sentiment has been optimistic as measured by the Purchasing Managers Index (PMI) which averaged 54.43 in 1Q18 (50.20 in 1Q17). Overall, we view 1Q18 GDP Growth rate will settle between 5.00 – 5.50 percent.

Secondary market turnover edged up 24.72 percent on Thursday to close at 2.35 billion shillings. 

Activity was spread out across the yield curve, coupled with an interest in infrastructure papers, but we expect a subdued trading session today as we clock the end of 2Q18.

The average interbank rate remained steady at 6.6425 percent. USDKES pair closed at 101.13 level. “We view the end-month corporate demand balanced with foreign inflows and as such, we expect the currency pair to oscillate at current levels,” said Genghis.

On the T-Bill auction, overall performance settled at 126.01 percent (30.24 billion shillings) with CBK accepting 26.77 billion shillings. Yields increased 0.8bps to 7.733 percent on the 91-day tenor while declined 4.9bps to 10.488 percent on the 364-day tenor.

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system. Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

Trending Stories
Investment Your Investment Plan For 2025: Mansa X (19.53%) vs. Oak Fund (29.38%) – 2024 Performance, Which Should You Invest In? Steve Biko Wafula
Entrepreneur's Corner 15 Reasons Why You NEED NCBA Now: The Bank Fueling Ambition And Entrepreneurship In Kenya Steve Biko Wafula
Government and Policy HELB Opens Loans And Bursary Application For Students, How To Apply Getrude Mathayo
Headlines Jubilee Health Insurance Launches Its First Center of Excellence, Agency Office; Empowering Agents To Bridge Kenya’s Healthcare Gap Soko Directory Team
Government and Policy TSC Announces JSS Vacancies, Requirements And How To Apply Getrude Mathayo
Related Articles
Headlines Jubilee Health Insurance Launches Its First Center of Excellence, Agency Office; Empowering Agents To Bridge Kenya’s Healthcare Gap Soko Directory Team
Government and Policy TSC Announces JSS Vacancies, Requirements And How To Apply Getrude Mathayo
Entrepreneur's Corner 15 Reasons Why You NEED NCBA Now: The Bank Fueling Ambition And Entrepreneurship In Kenya Steve Biko Wafula
Government and Policy HELB Opens Loans And Bursary Application For Students, How To Apply Getrude Mathayo
Entrepreneur's Corner New Year, New Financial Goals With NCBA: Why Financial Literacy Is The Real Resolution Soko Directory Team
Explore Soko Directory
Banking Blogging Commodity Watch Did you know Entertainment Entrepreneur's Corner Feature Government and Policy Headlines Investment Lifestyle Market News Money Opinion Press Releases Stock Watch Technology
Soko Directory Archives