Nigeria’s headline inflation rose by 98bps in January to 29.90% as against 28.92% that was recorded in December 2023.

The outturn is 40bps higher than Bloomberg’s median consensus estimate (29.50% y/y). Likewise, on a month-on-month basis, headline inflation increased by 35bps to 2.64% (December: 2.29% m/m).

Food inflation grew stronger in January by 148bps to 35.41% y/y (December: 33.93% y/y). The rise in Food inflation on a year-on-year basis was caused by increases in prices of Bread and cereals, Potatoes, Yam and other Tubers,

Oil and fat, Fish, Meat, Fruit, Coffee, Tea, and Cocoa. On a month-on-month basis, the Food inflation rate settled at 3.21%, relative to the 2.72% m/m in December 2023.

In the same vein, the core inflation (All items less farm produce and energy) rose by 50bps to 23.59% y/y (December: 23.06% y/y).

The highest increases were recorded in prices of Passenger Transport by Road, Medical Services, Actual and Imputed Rentals for Housing, Pharmaceutical products, Accommodation service, and Passenger Transport by Air. On a monthly basis, the core index settled higher by 40bps to 2.24% m/m in January (December: 1.82% m/m)