Nigeria’s headline inflation rose by 24bps in June to 34.19% y/y (May: 33.95% y/y). The outturn is 19bps higher than Cordros’ and Bloomberg’s median consensus estimates of 34.0% y/y. On a month-on-month basis, headline inflation rose by 17bps to 2.31% (May: 2.14% m/m).

Food inflation increased by 21bps to 40.87% y/y (May: 40.66% y/y). The rise in Food inflation on a year-on-year basis was caused by increases in prices of the following items: Millet Whole grain, Garri, Guinea corn, etc (Bread and Cereals Class), Yam, Water Yam, Coco Yam (Potatoes, Yam & Other Tubers Class), Groundnut Oil, Palm Oil, etc (Oil & Fats Class) and Catfish Dried, Dried Fish-Sadine, and Mudfish (Fish Class).

On a month-on-month basis, Food inflation increased by 2.55%, relative to the 2.28% m/m recorded in the previous month.

Similarly, the Core inflation increased by 36bps to 27.40% y/y (May: 27.04% y/y). The highest increases were recorded in prices of the following items: Rents (Actual and Imputed Rentals for Housing Class), Journey by motorcycle, Bus Journey intercity (under Passenger Transport by Road Class).

Accommodation Service, Consultation Fee of a medical doctor, Laboratory service, X-ray photography, etc (under Medical Services Class) and pharmaceutical products. Compared to the previous month, the Core index surged by 5bps to 2.06% m/m in June (May: 2.01% m/m).