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Core inflation

Nigeria’s inflation rate hits 19.64% in July 2022, the highest in 17 years

By Solomon Sele AyebawanaemiPosted on Posted in Articles, Business & Finance, EconomyTagged , , , , , No Comments on Nigeria’s inflation rate hits 19.64% in July 2022, the highest in 17 years

An examination of the NBS inflation data shows that this is the highest since September 2005 when the inflation rate hit 24.32% year-on-year. On a month-on-month basis, the headline inflation rose by 1.82% in July 2022. This is the same as the rate recorded in June 2022 (1.82% m/m). In our view, higher energy prices and continued depreciation of the local currency against the US Dollar were the key drivers behind this uptick.

Aftereffect of the festive season Leads to a Marginal Slowdown in Inflationary Pressure

By Temiloluwa BabatundePosted on Posted in EconomyTagged , , , , , No Comments on Aftereffect of the festive season Leads to a Marginal Slowdown in Inflationary Pressure

Looking further into the year, we recognize the possibility of upside inflation surprises, as the sub-par food harvests of last year could cause food supply to be slim during this year’s planting season, hence, propelling staple food prices northwards. Also, the impact of a base-effect sponsored moderation should become less material as we move further into the year, leaving the rate of inflation susceptible to the pass-through effect of soaring energy costs (fuel, electricity and gas), increased taxes associated with the finance act and currency depreciation. Our baseline expectation is for the headline inflation to average 14.81% in 2022 compared with 16.98% in 2021.

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