Nigeria’s headline inflation increased further by 172bps to 25.80% y/y in August (July: 24.08% y/y).
The outturn is 10bps and 80bps higher than Cordros’ estimate (25.70% y/y) and Bloomberg’s median consensus estimate (25.00% y/y). Similarly, on a month-on-month basis, headline inflation rose by 29bps to 3.18% (July: 2.89% m/m).
Food inflation maintained its uptrend in August, rising by 236bps to 29.34% y/y (July: 26.98% y/y). The rise in food inflation on a year-on-year basis was influenced by increases in prices of Oil and fat, Bread and cereals, Fish, Fruit, Meat, Vegetables and Potatoes, Yam and other Tubers, Vegetable, Milk, Cheese and Eggs.
On a month-on-month basis, food inflation increased by 3.87%, relative to the 3.45% m/m recorded in the previous month.
Likewise, the core inflation (All items less farm produce and energy) rose by 68bps to 21.15% y/y (July: 20.47% y/y). The highest increases were recorded in prices of Passenger Transport by Air, Passenger Transport by Road, Medical Services, Vehicle Spare parts, Maintenance, and repair of personal transport equipment.
On a monthly basis, the core index settled higher by 7bps to 2.18% m/m in August (July: 2.11% m/m).