Nigeria’s Headline Inflation Rate Moderates to 16.01% in August

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September 15, 2017/Cordros Research

According to the National Bureau of Statistics (NBS), Nigeria’s headline consumer price index has recorded its seventh consecutive deceleration this year. Headline inflation was 16.01% in August, 4 bps down from 16.05% in July, just 1 bp higher than Bloomberg’s median estimate of 16.00% and 2 bps lower than Cordros’ forecast of 16.03%. On month-on-month basis, the headline index increased by 0.97% (vs. 1.21% the previous month).

Food inflation rose to 20.25%, from 20.28% in July, driven by notable increases in bread and cereal, meat, vegetables, oils and fats, and milk, cheese and egg. On m/m basis, food inflation increased at a slower pace of 1.14%, compared to the 1.52% recorded in the previous month.

Core inflation increased at a faster pace (bucking the trend moderation recorded in the last eight months) in August, rising by 12.30%, versus 12.20% in July, with the highest increases reported in clothing materials and articles of clothing, garments, passenger transport by air, motorcycles, shoes and other footwear, furniture and furnishing, books and stationary, non-durable household goods, pharmaceutical products and maintenance, repair of personal transport equipment and glassware, tableware & household utensils. On a m/m basis, the core index increased at a slower rate of 0.93%, 7 bps below the 1.00% reported the previous month.