Nigeria’s headline inflation eased for the second consecutive month by 125bps to 32.15% y/y (July: 33.40% y/y). The outturn is 9ps lower than Cordros’ estimate (32.24% y/y). On a month-on-month basis, headline inflation slowed by 6bps to 2.22% (July: 2.28% m/m).

Food inflation moderated by 201bps to 37.52% y/y (July: 39.53% y/y). The slowdown can be attributed to the decline in the rate of increase in the average prices of Tobacco, Tea, Cocoa, Coffee, Groundnut Oil, Milk, Yam, Irish Potatoes, Water Yam, Cassava Tuber, Palm Oil, and Vegetable. Thus, on a month-on-month basis, food inflation settled at 2.37%, relative to the 2.47% m/m recorded in July.

Elsewhere, core inflation (All items less farm produce and energy) rose by 12bps to 27.58% y/y (July: 27.47% y/y). The highest increases were recorded in prices of the following items, Rents (Actual and Imputed Rentals for Housing Class), Bus Journey intercity, Journey by motorcycle, etc (under Passenger Transport by Road Class), and Accommodation Service, Laboratory service, X-ray photography, Consultation Fee of a medical doctor (under Medical Services Class). Similarly, the core index increased by 11bps to 2.27% m/m in July compared to the previous month (2.16% m/m).