October 17, 2017/Cordros Research
According to the National Bureau of Statistics (NBS), Nigeria’s headline consumer price index has recorded its eight consecutive deceleration this year. Headline inflation was 15.98% in September, 3 bps down from 16.01% in August, just 2 bp higher than Bloomberg’s median estimate of 16.00% and 22 bps lower than Cordros’ forecast of 16.20%. On month-on-month basis, the headline index increased by 0.78% (vs. 0.97% the previous month).
Food inflation rose to 20.32%, from 20.25% in August, driven by notable increases in bread and cereal, meat, vegetables, coffee tea and cocoa, fish, soft drinks, potatoes, yams and other tubers, oils and fats, and milk, cheese and egg. On m/m basis, food inflation increased at a slower pace of 0.87%, compared to the 1.14% recorded in the previous month.
Core inflation increased at a slower pace in September, rising by 12.10%, versus 12.30% in August, with the highest increases reported in clothing materials and articles of clothing, garments, passenger transport by air, motorcycles, shoes and other footwear, furniture and furnishing, solid fuel, and non-durable household goods. On a m/m basis, the core index increased at a slower rate of 0.80%, 13 bps below the 0.93% reported the previous month.