In the just concluded year, headline inflation rose from 21.8percent y/y in January to 28.2%lpercent y/y in November largely due to the continued pressure on the food inflation sub-basket. “On the basis of the above, we estimate a softer m/m headline reading of 2.4percent as against 2.5percent in the earlier forecast. As per the food inflation sub-component, we estimate the y/y reading to climb to 34.1percent (from 32.8%), while the m/m reading should settle at 2.8percent,” Afrinvest stated in its weekly report made available to Nigerian Tribune. For the core inflation sub-basket, the firm estimate a y/y reading of 21.3percent and m/m print of 1.8percent compared to 22.6%lpercent y/y and 1.6percent m/m in the preceding month. Looking ahead into 2024, the firm projects a modest decline in the average headline inflation rate (beginning from Q2) to 22.1percebt in a blue sky scenario.

Source: Nigerian Tribune January 15, 2024 12:38 UTC