Headline Inflation Rate Slides to 10-Month Low
Nigeria’s headline inflation rate slowdown 64 basis points to a 10-month low, the lowest since January 2021 according to the latest data released by the National Bureau of Statistics (NBS) today.
Marking the seventh consecutive month decline, inflation for October printed at 15.99% year on year from 16.63% reading in the month of September 2021. Due to disruption in supply chain, Nigeria had seen 19 months inflation surge before first moderation occurred in April.
A slew of analysts had projected that the inflation rate will slow down for the rest of the year due to base effect. Analysts said the outturn is 33 basis points lower than Cordros’ estimate of 16.32% year on year and 21 basis points lower than Bloomberg’s median consensus estimate of 16.20%, with deviations stemming from both the food and core baskets.
On a month-on-month basis, headline inflation moderated by 17 basis points to 0.98%. Food inflation also sustained its deceleration for the seventh consecutive month, declining by 123 basis points to 18.34% in October 2021 from 19.57% last month.
Notably, analysts said the most significant price increases were recorded in Coffee, tea and cocoa, Milk, cheese and eggs, Bread and cereals, Vegetables and potatoes, Yam and other tubers.
On a month-on-month basis, food inflation reversed last month’s increase, as it rose by 0.91% in October compared with 1.26% in September 2021. Similarly, core inflation slowed by 51 basis points to 13.24% year on year as against 13.74% recorded in September.
Pressures were most significant in the prices of Gas, fuels and lubricants for personal transport equipment, vehicle spare parts, Non-durable household goods, Solid fuel, and Passenger transport by road and Passenger transport by air.
Others are Garments, Cleaning, repair and hire of clothing, major household appliances whether electric or not, Wine, Clothing materials, other articles of clothing and clothing accessories and Liquid fuel.
Compared to the previous month, the core index moderated by 45 basis points to 0.80% month on month in October 2021. In the same vein, the urban and rural inflation readings moderated to 16.52% and 14.81%, respectively, in the review month from 17.19% and 16.08%, apiece in September 2021.
#Headline Inflation Rate Slides to 10-Month Low Read Also: Bond Rate Slides as Financial System Liquidity Pressure Eased
