The August 2019 Consumer price index (CPI) report as released by the The National Bureau of Statistics (NBS) shows that inflation dipped by 6bps to 11.02% y/y in August, from 11.08% y/y in June. The reading is 11bps higher than Cordros’s estimate of 10.91%. On a month-on-month basis, the headline index rose at a slower pace of 0.99% (June 2019: 1.01%).
Food inflation rose by 13.17% y/y in the review period, a slower increase relative to 13.39% y/y recorded in July. Notably, the highest increases were recorded in the prices of Oils and fats, Meat, Bread and cereals, Potatoes, yam and other tubers and Fish. On a month-on-month basis, food inflation increased at a slower pace by 1.22%, relative to the 1.26% recorded in the previous month.
Also, core inflation tapered to 8.68% y/y (vs 8.80 in July). The highest increases were recorded in the prices of Cleaning, Repair and hire of clothing, Repair of household appliances, Hospital services, Glassware, tableware and household utensils, Passenger transport by air and repair and hire of footwear. On a m/m basis, the core index increased by 0.67%, 10bps higher than 0.77% reported in July.