Nigeria’s headline inflation advanced by 55bps to 32.70% y/y in September (August: 32.15% y/y). The outturn is 30bps higher than Cordros’ (32.40% y/y) and Bloomberg’s median consensus (32.40%) estimates. On a month-on-month basis, headline inflation increased by 30bps to 2.52% (August: 2.22% m/m).
Food inflation increased by 25bps to 37.77% m/m (August: 37.52% m/m). The rise in food inflation on a year on-year basis was caused by increases in prices of the following items: Guinea Corn, Rice, Maize grains, Beans, Yam, Water Yam, Cassava Tuber, Beer (Local and Foreign), Lipton, Milo, Bournvita, etc (Coffee, Tea & Cocoa Class) and Vegetable Oil, Palm Oil, etc (Oil & Fats Class). On a month-on-month basis, food inflation settled at 2.64%, relative to the 2.37% m/m recorded in August.
Surprisingly, core inflation (All items less farm produce and energy) moderated by 15bps to 27.43% y/y (August: 27.58% y/y).
Despite the slowdown, the core basket remains elevated in line with notable prices increases recorded across the following items: Rents (Actual and Imputed Rentals for Housing Class), Bus Journey intercity, Taxi Journey per drop, etc (under Passenger Transport by Road Class), Meal at a local Restaurant (Accommodation Service Class), Laboratory service, Consultation Fee of a medical doctor, etc (under Medical Services Class).
Likewise, the core index eased by 17bps to 2.10% m/m in September 2024 compared to the previous month (2.27% m/m).
