Leading Economic Indicator July 2018

The Leading Economic Indicators highlights trends in Consumer Price Indices (CPI) and inflation, interest rates, exchange rates, international trade, agriculture, energy, manufacturing, building and construction, tourismand transport.
Consumer Price Index (CPI) decreased from 193.31 points in June 2018 to 191.59 points in July 2018. The overall rate of inflation rose slightly from 4.28 per cent to 4.35 per cent during the same period. In July 2018, the Kenyan Shilling appreciated against the major trading currencies except for the Sterling Pound and the Ugandan Shilling. The average yield rate for the 91-day Treasury bills, which is a benchmark for the generaltrend of interest rates decreased slightly from 7.87 per cent in June 2018 to 7.69 per cent in July 2018, while
the inter-bank rate rose from 5.03 per cent in June 2018 to 5.06 per cent in July 2018.
The Nairobi Securities Exchange (NSE) 20 share index increased from 3,286 points in June 2018 to 3,320 points in July 2018, while the total number of shares traded dropped from 453 million shares to 323 million shares during the same period. The total value of NSE shares traded decreased from KSh 13.69 billion in June 2018 to KSh 9.74 billion in July 2018.
Broad money supply (M3), a key indicator for monetary policy formulation, increased from KSh 3,242.94 billion in June 2018 to KSh 3,258.99 billion in July 2018. Gross Foreign Exchange Reserves increased from KSh 1,221.83 billion in June 2018 to KSh 1,235.33 billion in July 2018. Net Foreign Exchange Reserves deceased from KSh 760.51 billion in June 2018 to KSh 759.29 billion in July 2018.